11.09.202512:23:19UTC+00Euro Slips Below $1.17 as ECB Holds Rates

The euro experienced a minor decline against the US dollar, dipping below $1.17 following the European Central Bank’s decision to maintain interest rates and issue updated growth forecasts. This development was largely anticipated as policymakers navigated a landscape of consistent inflation, a robust economy, historically low unemployment rates, and uncertainties surrounding trade policies. The ECB now predicts that the eurozone's GDP will grow by 1.2% in 2025, an upward revision from June's prediction of 0.9%. However, the growth estimation for 2026 has been adjusted downward to 1.0%, with the 2027 forecast holding steady at 1.3%. Regarding inflation, projections have been adjusted upwards for both this year and the next. The headline inflation rate is now projected to average 2.1% in 2025, rising from June’s 2.0% forecast, with 1.7% expected in 2026, slightly up from 1.6%, and 1.9% in 2027, a slight decrease from the earlier 2.0% estimate. ECB officials stressed they are not committed to a predetermined interest rate trajectory, indicating that future policy will be guided by ongoing economic data.