Policymakers must remain agile, noting that the stronger euro was having a significant disinflationary effect, Bank of France Governor Francois Villeroy de Galhau said.

FRANKFURT (Reuters) -Euro zone inflation may be lower this year and next than previously expected and will remain around the European Central Bank's 2% target in the longer term, the ECB's Survey of Professional Forecasters showed on Friday.

Monetary policyMonetary policy strategy updateOn 25 June 2025 the Governing Council approved the results of its 2025 monetary policy strategy

The central bank left its key deposit rate at 2% after making eight cuts since last June.

The European Central Bank said on Friday it had picked Isabel Vansteenkiste as President Christine Lagarde's new top adviser, replacing Roland Straub who would take up a new role at the ECB.

"At 2%, rates remain squarely to the middle of the ECB’s 1.5% to 2.5% neutral range. Uncertainty is highly elevated, however, and, if trade tensions escalate, further easing may well be required later in the year to help support business and consumer confidence." SYLVAIN BROYER, CHIEF EMEA ECONOMIST, S&P GLOBAL RATINGS:

BNP Paribas economists are no longer calling for a 25 basis point cut from the European Central Bank in September following the press conference from ECB chief Christine Lagarde. BNP said Lagarde played down an undershooting of ECB staff inflation forecasts,

The European Central Bank’s decision to hold interest rates gives the eurozone time to assess growing trade risks and maintain financial stability, according to fintech app Plum. Following the ECB’s governing council meeting on Thursday,

The bank’s governing council announced on Thursday at its headquarters in Frankfurt that it would leave its benchmark deposit rate at 2%.