Overview of European Central Bank Interest Rate Decision

Statement: 1. Interest rate decision: The European Central Bank has maintained the deposit facility rate at 2%, in line with market expectations, continuing its unchanged stance for the third consecutive meeting. 2. Voting results: The European Central Bank resolution was passed with unanimous approval. 3. Inflation outlook: Assessment of the inflation outlook remains largely unchanged. Determined to ensure inflation remains stable at the target level of 2% in the medium term. 4. Economic outlook: Despite a challenging environment, the economy continues to grow. 5. Policy outlook: Will decide on the monetary policy stance in a data-driven and gradual manner. Lagarde Press Conference: 1. Economic outlook: Trade and geopolitical stability have eased some downside growth risks. Manufacturing sector is being dragged down by high tariffs and a stronger euro. 2. Inflation outlook: Core inflation indicators are in line with target levels. Inflation outlook is more uncertain than usual. Increased defense spending may push inflation higher in the medium term. 3. Interest rate outlook: We are in a good position. 4. Other matters: Will closely monitor the impact of artificial intelligence on the labor market. 5. Market reaction: Eurozone government bonds remained steady after the European Central Bank interest rate decision, with the yield on 10-year German bonds rising by 4 basis points to 2.65%. Euro slightly rebounded.