European Central Bank, Bank of England Keep Interest Rates Steady

Are European central banks maintaining stability or masking deeper economic struggles?
European Central Bank, Bank of England Keep Interest Rates Steady
Above: European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey, on Aug. 23, 2025. Image credit: David Paul Morris/Bloomberg/Getty Images

The Spin

Pro-establishment narrative

The European Central Bank's decision to hold rates steady reflects a resilient eurozone economy underpinned by solid fundamentals, while the Bank of England's inflation projections contain positive revisions showing inflation falling quicker than expected. Both banks will continue to maintain sensible monetary policy amid global volatility, ensuring fiscal responsibility across Europe.

Establishment-critical narrative

Beyond the headlines of prudency lie fundamental challenges within both economic zones. As Britain witnesses shrinking growth and increasing inflation, euro zone inflation remaining below its 2% target exposes continued challenges with consumer demand and growth. Despite the pleasantries, steady interest rates should not be confused with fiscal success.

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© 2026 Improve the News Foundation. All rights reserved.Version 6.20.3

© 2026 Improve the News Foundation.

All rights reserved.

Version 6.20.3