European Central Bank holds rates, signals cautious outlook

Wednesday, December 10, 2025 at 15:45 UTC+01:00 (+0100), Eurozone, Frankfurt

News category : Macroeconomic Events

On December 10, 2025, the European Central Bank kept its key interest rates unchanged following its final policy meeting of the year. ECB officials acknowledged continued disinflation across the euro area but highlighted persistent uncertainty around wage growth and economic momentum. President Christine Lagarde reiterated that future decisions would remain strictly data-dependent, avoiding commitment to a near-term rate-cutting path. The decision reflected a balancing act between supporting fragile growth and ensuring inflation remains durably aligned with the ECB’s target. The outcome influenced euro-area bond yields, currency markets, and expectations for monetary policy divergence between Europe and the United States in 2026.

Overall market impact

Mild neutral market impact - strength score : 75/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

Eurozone bonds

EUR FX

European equities

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