Deutsche Bank economists are optimistic about the European Central Bank's balanced approach to interest rate policy

According to the latest reports, Mark Wall, Chief European Economist at Deutsche Bank, expressed support for the European Central Bank’s recent policy decision. In the current complex and volatile economic environment, the central bank’s choice to maintain the current policy interest rate is widely regarded within the industry as a prudent decision. This decision reflects the central bank’s delicate balancing act between stabilizing growth and preventing risks.

The Central Bank’s Balancing Choice in a Dilemma

Mark Wall pointed out that the European Central Bank needs to find the right focus amid multiple pressures. On one hand, the European economy still faces uncertainties and external risks from the international environment; on the other hand, the economic fundamentals have shown considerable resilience, supporting the stability of the central bank’s policies. The decision to keep interest rates unchanged was a pragmatic choice made after fully assessing these factors.

Resilience of the European Economy

Deutsche Bank’s analysis shows that Europe’s relative economic stability is attributable to the support from various national policies. Especially Germany’s increased efforts in defense construction and infrastructure investment have injected new momentum into the entire European economic growth. The presence of these positive factors means that when formulating interest rate policies, the central bank does not need to rush into adjustments and has sufficient reasons to maintain the current stance, providing a stable policy environment for sustainable economic growth.