David McNamara: ECB ready to take a pause on rate cuts

Trade tensions and still high core inflation should give policymakers pause for thought on lowering interest rates further

ECB president Christine Lagarde said the outlook was 'more uncertain than usual' against the backdrop of elevated trade tensions and geopolitical risks.

The ECB’s Governing Council meeting for June saw the central bank lower interest rates for a fourth consecutive time this year. 

The deposit rate was lowered by 25bps to 2%, while the refinancing rate, which underpins tracker mortgage rates, was decreased to 2.15%. This marked the eighth 25bps rate cut since the ECB started its easing cycle in June 2024.