# ECB pledges low rates for longer as virus casts shadow over growth

> The European Central Bank pledged to keep interest rates at record lows for even longer to lift sluggish inflation. It warned that the fast-spreading Delta coronavirus variant poses a risk to the euro zone's recovery.

- Date: 2021-07-21 · published 2021-07-21T12:00:00.000Z
- Category: macro · region Europe · magnitude medium
- Page: https://feedsoft.ai/events/46291-ecb-pledges-low-rates-for-longer-as-virus-casts-shadow-over-growth
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

A more dovish ECB than markets expected widens the rate gap with the Fed and tends to weigh on the euro, which strengthens the dollar. A firmer dollar lowers USD-priced feed commodity values for import-dependent buyers.

## Read by commodity

- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2025-02-27 | [ECB to cut rates again on March 6 as focus turns to growth](https://feedsoft.ai/events/26270-ecb-to-cut-rates-again-on-march-6-as-focus-turns-to-growth.md) | +2.4% | +2.5% |
| EURUSD | 2019-07-26 | [The Euro-Dollar Rate is In Line for Forecast Downgrades as ECB Eyes Stimulus](https://feedsoft.ai/events/58314-the-euro-dollar-rate-is-in-line-for-forecast-downgrades-as-ecb-eyes-stimulus.md) | -0.8% | -0.6% |
| EURUSD | 2019-10-10 | [ECB minutes show deep rift over policy as Draghi era closes](https://feedsoft.ai/events/56785-ecb-minutes-show-deep-rift-over-policy-as-draghi-era-closes.md) | +1.4% | +0.6% |
| EURUSD | 2024-10-16 | [ECB lowers rates and eyes more cuts as economy sags \| Reuters](https://feedsoft.ai/events/28069-ecb-lowers-rates-and-eyes-more-cuts-as-economy-sags-reuters.md) | -0.9% | -3.0% |
| EURUSD | 2019-01-31 | [Euro Sterling, Euro Swiss Exchange Rates Plunge As Disappointing GDP Confirms Slow Eurozone Economic Growth](https://feedsoft.ai/events/61304-euro-sterling-euro-swiss-exchange-rates-plunge-as-disappointing-gdp-confirms.md) | -0.3% | -0.4% |

## Sources

- reuters.com: https://www.reuters.com/business/ecb-set-promise-even-longer-support-charge-inflation-2021-07-21/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.