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ECB Keeps Rates Unchanged as Iran War Escalates Inflation Risks
The European Central Bank kept interest rates unchanged at its April meeting, with the main refinancing rate at 2.15% and the deposit facility rate at 2%. Policymakers adopted a ca...
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The European Central Bank kept interest rates unchanged at its April meeting, with the main refinancing rate at 2.15% and the deposit facility rate at 2%. Policymakers adopted a cautious stance to assess the impact of the Iran war on inflation and economic growth.

Although the ECB said it remains well prepared to respond to uncertainty, officials noted that upside risks to inflation and downside risks to economic growth have intensified. They emphasized that long-term inflation expectations remain stable, but short-term expectations have risen markedly. The wars impact on medium-term inflation and economic activity will depend on the duration and intensity of energy price shocks, as well as their indirect and second-round effects.

Related NewsPPI MoM for Apr in United States is 1.4%, higher than the previous value of 0.7%. The forecast was 0.5%.
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