2026.03.1913:47:45UTC+00Euro Edges Up after ECB Meeting

The euro rose to $1.148 after the European Central Bank left interest rates unchanged for a sixth consecutive meeting, maintaining the deposit rate at 2% in line with expectations. Policymakers emphasized a cautious, data-dependent stance, indicating that decisions will continue to be made on a meeting-by-meeting basis.

The ECB warned that the war in Iran has heightened uncertainty, creating upside risks to inflation and downside risks to economic growth, particularly via higher energy prices in the near term. It reiterated its commitment to returning inflation to the 2% target over time.

Market participants still anticipate additional tightening, with two rate hikes fully priced in for this year and the possibility of a third move. Other major central banks are also on hold: the Bank of England and the Bank of Japan have kept their policy rates steady following the Federal Reserve’s decision to pause earlier in the week.