The European Central Bank kept its benchmark interest rates unchanged at a record high on Thursday, in line with the market’s expectations, but gave no hint for rate cuts as the central bank reaffirmed its commitment to bring down inflation.
The benchmark was kept at 4% since last September, which was considered the end of a 4.5 percentage points rate-hike cycle to contain several decade-high inflation rates that came after the Covid-19 pandemic.
At the meeting on Thursday, the ECB did not give any signal that rate cuts are on the table, while continuing to reaffirm its position to fight inflation that stood at 2.9% in December. The central bank believed prices will come down to its 2% target by 2025.
