Breaking News: EUR/USD rallies as ECB leaves rates unchanged

• EU ECB Main Refinancing Operations Rate: 2.15% vs 2.15% expected, meets consensus
• EU ECB Rate On Deposit Facility: 2.00% vs 2.00% expected, meets consensus
• EU ECB Marginal Lending Facility : 2.40% vs 2.40% expected, meets consensus

Breaking: The European Central Bank (ECB) voted to maintain rates at ~2.15% in their July decision, meeting consensus. Otherwise, the rates on the deposit facility and the marginal lending facility were also held at 2.00% and 2.40% respectively.

Having cut rates aggressively for much of 2025, the vote represents the first time in seven decisions where rates have not been lowered.

Key takeaway: Citing a continued commitment to controlling inflation, the ECB has paused its current monetary easing cycle. While negotiations remain ongoing, US tariffs remain a large unknown for the EU economy, which has caused the ECB to become more hawkish compared to recent decisions.

"The Governing Council today decided to keep the three key ECB interest rates unchanged. Inflation is currently at the 2% medium-term target. The incoming information is broadly in line with the Governing Council’s previous assessment of the inflation outlook. Domestic price pressures have continued to ease, with wages growing more slowly. Partly reflecting the Governing Council’s past interest rate cuts, the economy has so far proven resilient overall in a challenging global environment. At the same time, the environment remains exceptionally uncertain, especially because of trade disputes"

Monetary Policy Decisions, ecb.europa.eu 24/07/2025

In the minutes following the release, when considering the result met consensus, the reaction remained somewhat muted. EUR/USD has risen by +0.02%, EUR/GBP by +0.03%, and EUR/JPY by +0.01%.

All correct at the time of publication

Read more coverage on markets today: Markets Today: FTSE 100 Breaks Records as Euro Area Private Sector Growth Hits 11-Month Highs, ECB Meeting Ahead