ECB Holds Interest Rates Steady Amid Uncertainty
Reading
The European Central Bank did not change interest rates. This happened because of uncertainty about tariffs from the US. Donald Trump wants to put taxes on goods from Europe.
Christine Lagarde said the economy is very uncertain right now. Higher tariffs could make the economy slower or cause prices to rise. She hopes the trade problems get solved soon for everyone's benefit.
The ECB is waiting to see what happens with the tariffs. They want to know the effect on the economy before making changes. The US Federal Reserve is also waiting to see the impact of the tariffs.
The ECB has cut rates many times since last year. They lowered rates to help the economy grow after a crisis. The main interest rate is now at 2 percent.
Analysts think a rate cut in September is possible, but not certain. The ECB does not know what will happen in talks between the EU and the US. Higher tariffs could hurt European companies and slow down the economy.
Questions
Why did the European Central Bank not change interest rates?
They did not change interest rates because of uncertainty about tariffs from the US.
What does Christine Lagarde think about the economy?
She thinks the economy is very uncertain right now.
What is the current main interest rate set by the ECB?
The main interest rate is now at 2 percent.
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