EURUSD: ECB pauses interest rate hike as inflation shows signs

The European Central Bank (ECB) declared that it will no longer be increasing interest rates as a result of a decrease in lending and declining inflation. Boris Vujcic, a member of the ECB Council, made the statement on Croatian state media, HRT1. President Christine Lagarde's ECB recently halted its extraordinary tightening campaign, keeping interest rates steady for the first time in almost a year.

The inflation rate for the euro zone is expected to drop to 3.1% this month from its peak of 10.6% in October 2022. Recent estimates of the economy's growth are in line with the ECB's 2% target. Commercial lenders have quickly changed the interest rates on loans and mortgages in reaction to these developments. Saver, however, feels less of an influence from these adjustments.