Frankfurt/December 17, 2025 – The European Central Bank (ECB) has opted to maintain interest rates following several hikes throughout 2025, marking a pause in its accommodative strategy. This decision is rooted in a backdrop of more solid economic growth, despite lingering inflation pressures within the eurozone.
In its latest meeting, interest rates were held steady, reflecting a cautious approach to monetary policy management. While inflation has shown signs of slowing, economic growth has been robust enough to justify this stance.
Recent figures reveal that broad money growth in the system has fallen to 0.6% annually, indicating potential weakness in credit. However, business confidence and employment indicators suggest sustained growth potential, leading the ECB to believe that it is not the right moment to cut interest rates.
In conclusion, while risks to the economy and inflation persist, the ECB's decision to avoid rate cuts highlights a more optimistic outlook on short-term growth, laying the groundwork for a stronger recovery.
