Commenting on today's interest rate decision from the European Central Bank (ECB), Irene Lauro, Eurozone Economist at Schroders , said:

Irene Lauro

"The ECB today appears to confirm our view that the easing cycle has ended. With trade uncertainty fading, the euro area’s recovery is set to accelerate.

"Firms are likely to shed caution, boosting corporate borrowing and investment. Labour markets remain tight, with unemployment near record lows, and Germany’s frontloaded fiscal stimulus will add further fuel to the upswing.

"Risks have shifted for the eurozone from trade uncertainty to political instability, with France now in the fiscal spotlight. But the resilience of the economy and strengthening domestic demand means the ECB can afford to keep monetary policy unchanged."