ECB Is Set to Pause Rate Hikes to Gauge War Risk

On 23 July 2026, the European Central Bank held its interest rate at 2.25% after debating a rise, according to the Financial Times. Reuters wrote that it left room for further hikes, and Euronews wrote that the Iran war boosted inflation fears. Bloomberg reported that ECB officials are ready to raise rates in September, and that Lagarde signalled the ECB is primed for a possible move that month.

Lagarde said she is staying at the ECB at least until year end, Bloomberg reported. Separately, the ECB presented ten design options for new euro-area banknotes and invited Europeans to choose between opera icons and birds.