ECB Likely to Maintain Deposit Rate at 2.25% in July, September Meeting Open for Action

The European Central Bank (ECB) is expected to hold the deposit rate steady at 2.25% during its July meeting, with no policy changes anticipated next week. This follows a rate hike in June, signaling a pause in tightening for now.

According to FX Street (Scotiabank), the EUR/USD pair is trading slightly lower in subdued market conditions ahead of the ECB’s decision, reflecting cautious investor sentiment. FX Street (TD Securities) also noted that while July’s meeting appears set to maintain the status quo, the September session remains a possibility for further adjustments depending on economic developments.

For Japanese investors, the ECB’s steady stance and the resulting euro movement could influence FX and equity markets, particularly in yen crosses and export-related sectors sensitive to European demand.