FRANKFURT: The European Central Bank warned on Thursday a stronger euro could push inflation down too far after recent gains in the single currency, but sought to downplay any immediate threat to the eurozone economy.

As expected, the central bank for the 21-nation single-currency area kept its benchmark interest rate on hold at 2 per cent, where it has been since June last year.

The Bank of England also left its benchmark interest rate unchanged on Thursday, at 3.75pc, while cutting its forecasts for UK growth this year and next

ECB President Christine Lagarde stressed the eurozone economy, which has been picking up speed recently, remained “resilient” and officials were confident inflation would settle around the central bank’s two-percent target.

But much attention at her press conference focused on the recent gains of the euro, which jumped above the $1.20 threshold last week as the dollar weakened on renewed worries about US economic policy under President Donald Trump.

Published in Dawn, February 6th, 2026