ECB Keeps Rates Unchanged, September Move "Wide Open"

• The European Central Bank kept interest rates unchanged as expected on Thursday, with its president Christine Lagarde saying a move in September was "wide open".
  Investment indicators point to muted growth in 2024, she continued, noting that the eurozone had probably grown at a slower pace in April-June than the 0.3% of the first quarter.
• The euro was left unchanged by Thursday's decision, which had been telegraphed by policymakers in recent weeks. Now, the focus shifts to September's meeting, which will come at around the time that markets also see the U.S. Federal Reserve cutting.
• The ECB's key concern is that domestic prices, particularly for services, are moving sideways, while relatively quick wage growth threatens to perpetuate inflation above the ECB's target.
• The economy also remains relatively weak, with a string of surveys pointing to anaemic growth, easing fears that buzzing summer activity, particularly in tourism, will further fuel price pressures.

(Source: Reuters)