The ECB kept its policy rates unchanged, leaving the deposit facility rate at 3.75% and the main refinancing operations rate at 4.25%, said Bas van Geffen, senior macro strategist at Rabobank.
Rate cut in September remains highly likely
“The ECB’s decision to keep rates unchanged was tempered by a slightly dovish statement. We believe policymakers are inclined to look beyond short-term data unless it materially impacts their medium-term projections.”
“A rate cut in September remains highly likely, although Lagarde said the outcome of that meeting is ‘totally open’. We see upside risks to our deposit rate outlook, but particularly further into the easing cycle.”
Source: Fx Street
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