European Central Bank Holds Interest Rates Steady

Arabic - The European Central Bank (ECB) decided in its meeting today, Thursday, to keep its key interest rates in the euro area unchanged at 2.25%.

In a statement following the meeting, the ECB said: “Uncertainty remains high, and the full inflationary effects of the energy shock have not yet become clear. Therefore, the Governing Council continues to closely monitor the intensity and duration of the shock, as well as its indirect effects.”

Experts believe that an interest rate hike could come in September, when the ECB will have new forecasts on inflation and economic activity.

ECB President Christine Lagarde stated that long-term inflation expectations remain at 2%, adding: “We expect moderate wage growth in the next quarter.”

Under the decision, the interest rate on the ECB’s daily loans to banks remained at 2.65%, while the rate on weekly loans stayed at 2.40%.