The Latest Breaking News from the European Central Bank

The European Central Bank kept rates unchanged as inflation hit its 2% target. Lagarde urged patience, citing global risks and reaffirming a data-driven approach.

The European Central Bank kept its benchmark interest unchanged, in line with analyst estimates.

The European Central Bank is set to hold interest rates for the first time in almost a year when policymakers meet this week, despite concerns over the potential impact of higher US tariffs on the eurozone economy.

The head of the European Central Bank said inflation has become more unpredictable due to shocks like the COVID-19 pandemic and Russia’s invasion of Ukraine - and that policymakers need to take the possibility of such extreme scenarios into account and communicate them to the public as well

The FTSE 100 index closed up 9.75 points, 0.1%, at 8,811.04.

Lower inflation and concern that U.S. President Donald Trump’s trade war will slow already modest growth have cleared the way for the European Central Bank to cut interest rates at Thursday’s policy meeting, a step that would lower borrowing costs for consumers and businesses and promote economic activity

Inflation in the 20 countries that use the euro fell to 1.9% in May from 2.2% in April, helping clear the way for more interest rate cuts from the European Central Bank

Eurozone private sector contracted in May, with Composite PMI falling to 49.5. Services saw their sharpest drop in 16 months, while manufacturing stabilised. Business confidence hit a 19-month low, reinforcing expectations for further ECB rate cuts.

June S&P 500 E-Mini futures (ESM25) are down -0.70%, and June Nasdaq 100 E-Mini futures (NQM25) are down -0.67% this morning as Treasury yields continue to rise on worries about U.S. government debt while U.S. President Donald Trump pushes to advance his tax bill.