ECB to leave key rates untouched
Week Ahead , 18. Juli
We do not expect any change in key interest rates at next week's ECB meeting. The central bank's next steps will be heavily influenced by developments in the tariff dispute with the US and the impact on growth expectations. If the situation escalates, the ECB's “alert level” would rise. As soon as a sustained economic slowdown becomes foreseeable, it would probably respond promptly with lower interest rates. However, we assume that any escalation can be avoided and that there will therefore be no reason to cut interest rates in the foreseeable future.