In just about every major economy, financial experts and business leaders are often hoping for federal governments to raise interest rates, often seen as an indicator of economic strength. This meant that the European Central Bank's announcement stating it would keep rates as they are likely came as a surprise to some throughout the European Union and the global business community.
Nevertheless, CNBC reported that the ECB's policy of gradually ending quantitative easing measures, and its commitment to ending bond purchases when 2018 comes to a close, is being seen as a wise move by various economists. Carsen Brzeski, an ECB expert at Frankfurt, Germany-based bank ING DiBa, explained to the business network that it's often for the best when a nation (or bloc, in the EU's case) ends a stimulus policy, as it indicates confidence in the economy.
"According to this definition, the ECB should be extremely satisfied with the outcome of today's meeting," Brzeski said.
It seems that the ongoing trade conflicts between the EU and the U.S. are more concerning than issues like interest rates for ECB leaders such as bank president Mario Draghi, according to The New York Times. In a news conference following the ECB summit where bank executives decided not to hike rates, Draghi said the tariff-driven dispute could seriously damage the EU economy if it continued much longer.