MNI BRIEF: ECB “Deliberately Uninformative” About Rate Path

 The European Central Bank Governing Council agreed to maintain a neutral tone of  communication and “be deliberately uninformative about future interest rate decisions” given uncertainty regarding the economy and trade outlook, ECB accounts of its July meeting published on Thursday said.

Despite the fact that there was “considerable discussion on the role of uncertainty, which remained very high,” there was high value in waiting for more information, they said.

 “All of this should facilitate, by September, a better understanding of how the economy was responding to the current challenges, including in relation to the counteracting forces currently obscuring the data signals, and what that implied for the outlook.”

The discussion has shifted from the speed at which interest rates should be normalised to potential marginal adjustments for the remainder of 2025, members said, calling for continuing data dependence.