ECB Holds Rates Steady as Eurozone Inflation Shows Signs of Stabilizing
January 25, 2025
The European Central Bank maintained its main refinancing rate at 3.40% during its latest monetary policy meeting, as policymakers assess the impact of previous rate hikes on inflation and economic growth. ECB President Christine Lagarde emphasized that the central bank remains committed to bringing inflation back to its 2% target, while acknowledging recent signs of economic stabilization across the eurozone. The decision comes as core inflation has shown modest declines, falling to 2.7% in December from 2.9% in November. Financial markets reacted positively to the decision, with the euro gaining 0.4% against the US dollar immediately following the announcement. Lagarde indicated that future policy decisions will remain data-dependent, with particular attention to wage growth and underlying inflation pressures.