Monetary policy: ECB leaves key interest rate at 2.5 percent for now despite high inflation
Inflation in the euro zone is at its highest level in three years. For now, the ECB is ruling out another interest rate hike. However, this step could follow soon.
The European Central Bank (ECB) has decided to keep its deposit rate for banks at 2.5 percent, putting on hold further interest rate hikes for now. The bank cited rising energy prices, which have increased inflationary pressure and pose "downside risks to growth prospects." The ECB also noted that the full impact of the energy price shock has yet to be felt.
This decision follows a similar move by the US Federal Reserve and comes as energy prices, including European Brent oil and gas, have surged in recent weeks. ECB President Christine Lagarde announced her early departure from the bank, set for February 2027.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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