ECB Officials Judge They Can Hold Rates Steady in September

European Central Bank officials are said to be growing more confident they can leave interest rates on hold in September. Growth and inflation are developing in line with the ECB’s June outlook, and the trade deal between the European Union and the US isn’t causing major economic concern.

That’s leaving the ECB in a position to keep the benchmark rate at 2% next month, people familiar say. Economists expect the rate to be cut in December, and then remain unchanged for most of 2026. The ECB signaled in July that the bar for further moves is high.

Meanwhile, in the Teton Range mountains in Wyoming, Federal Reserve Chair Jerome Powell opened the door to an interest-rate cut next month, albeit cautiously. At the annual Jackson Hole gathering of central bankers, Powell acknowledged that labor market conditions have cooled, but continued to argue that trade tariffs could lead to persistent inflation.