ECB expected to hold rates steady in July, deposit rate at 2.25%

Odaily Odaily News Scotiabank stated that policy adjustments do not need to follow a straight line, especially during periods of high uncertainty. The market expects the ECB to keep the deposit rate unchanged at 2.25% at next Thursday's rate decision, following a 25 basis point rate hike in June. ECB President Lagarde said on July 1 that upside risks to inflation and downside risks to growth may be more balanced than a few weeks ago. Since then, the conflict between the US and Iran has reignited, with WTI and Brent crude both rising by about $12 per barrel. In June, the Eurozone's overall CPI fell by 0.1% month-on-month, while core CPI year-on-year eased from 2.6% to 2.4%.