Following its policy meeting on 11/9, the ECB announced that it would hold its key interest rate at 2%. This rate has been in place since June, following eight consecutive cuts since June 2024.

"Inflation remains around the 2% target, and the Governing Council’s assessment of the inflation outlook is virtually unchanged," the ECB explained in its statement. This decision aligned with investor expectations.

ECB President Christine Lagarde speaks in Frankfurt, Germany. Photo: Reuters

ECB President Christine Lagarde speaks in Frankfurt, Germany. Photo: Reuters

The ECB affirmed its commitment to closely monitor the situation at each meeting, making data-driven decisions without pre-committing to any specific interest rate path. The central bank is grappling with global economic instability, despite eurozone inflation hovering around its 2% target for the past few months. The EU and the US have also signed a trade agreement, agreeing on reciprocal tariffs of 15%.

However, some issues remain unresolved, such as tariffs on wines and spirits. Investors have also recently expressed concern over US President Donald Trump's threats to retaliate against the EU's 3.45 billion USD fine on Google for antitrust violations.

The US is currently the EU's largest trading and investment partner. The bloc exported 503 billion euros (590 billion USD) worth of goods to the US last year.

Investors remain apprehensive about the impact of import tariffs on economic growth. Eurozone GDP grew by only 0.1% in the second quarter, significantly slower than the 0.6% growth recorded in the first quarter.

In a press conference on 11/9, ECB President Christine Lagarde noted that the inflation outlook remains uncertain due to the volatile global trade policy environment. High import tariffs, a strong euro, and increased global competition could also restrain eurozone growth this year. "However, the impact of these challenges on growth will gradually diminish next year," she predicted.

Ha Thu (Reuters, CNBC)