ECB Expected to Keep Rates Steady Amidst Modest Economic Improvement
Update: 2025-12-18
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The European Central Bank is expected to maintain interest rates at their current level, with Christine Lagarde likely to reiterate that their monetary policy is in a good place. Despite modest economic improvement and a slight dip in purchasing manager surveys, the ECB is not expected to cut rates due to concerns over inflationary pressures. The services sector, which includes various services like personal care and hospitality, has seen higher inflation rates. Central bank rate cuts typically stimulate economic growth, while higher rates control inflation.
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