European Central Bank keeps interest rates unchanged

With the risk of retaliatory tariffs receding, we expect on balance the net impact of increased trade frictions to be disinflationary, writes KPMG UK Chief Economist Yael Selfin.

The European Central Bank (ECB) has kept interest rates unchanged for the second consecutive meeting. The decision was in line with market expectations which fully priced in a hold ahead of the decision. Despite the flurry of economic data and the trade agreement with the United States (US) in August, the broad economic picture was largely unchanged from the July meeting, strengthening the case to keep rates on hold. However, we see an outsized chance of one more cut this year, with the ke...

Sign in below or register now to read the full article

Authors: Yael Selfin

Published Date: 17 September 2025