The Latest Breaking News from European Central Bank

Live, rolling coverage of business, economics and financial markets as policy rate left at 2%

The European Central Bank looks set to keep interest rates unchanged on Thursday while the introduction of higher US tariffs threatened by US President Donald Trump hangs in the balance.

Stablecoins risk undermining central banks’ ability to conduct monetary policy. They’re also becoming increasingly popular among investors.

September S&P 500 E-Mini futures (ESU25) are down -0.21%, and September Nasdaq 100 E-Mini futures (NQU25) are down -0.29% this morning, taking a breather after a recent rally, as investors monitor progress on U.S. trade talks and wrangling in Washington over President Donald Trump’s tax-and-spending bill.

Tom Lee, the head of research at Fundstrat Global Advisors, highlighted a crucial factor that could explain why the European Central Bank (ECB) has been able to cut interest rates while the U.S. Federal Reserve (Fed) has not.

Lower inflation and concern that U.S. President Donald Trump’s trade war will slow already modest growth have cleared the way for the European Central Bank to cut interest rates at Thursday’s policy meeting, a step that would lower borrowing costs for consumers and businesses and promote economic activity

“You’re not about to see the back of me,” insists Lagarde, sporting a necklace reading ‘in charge’, following claims she discussed leaving ECB early to run World Economic Forum

Eurozone growth barely advanced in April as services stagnated despite a manufacturing rebound. Cooling inflation boosts hopes for an ECB rate cut, but weak demand and falling confidence cloud the outlook.

European Central Bank chief Christine Lagarde said Tuesday that she hoped US President Donald Trump would not oust the country's central bank boss Jerome Powell prematurely.

European Central Bank policymakers look increasingly likely to cut interest rates again on Thursday, with US President Donald Trump's stop-start tariff announcements sowing concern in the eurozone.

This week, the European Central Bank’s (ECB) interest rate decision will take centre stage. The bank is expected to continue reducing its benchmark policy rates amid mounting economic risks linked to tariffs. In Asia, China’s GDP will be closely watched by investors.