ECB Holds Rates at 2 Percent Amid Middle East Conflict

The ECB held interest rates at 2 percent on Thursday. President Lagarde noted that Middle East conflicts cloud the outlook for growth and inflation in the region.

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The European Central Bank maintained its benchmark interest rate at 2% on Thursday, citing significant economic uncertainty fueled by ongoing conflict. President Christine Lagarde highlighted that the war involving Iran has cast a shadow over the euro zone’s growth and inflation projections.

European Central Bank President Christine Lagarde speaks to reporters at a press conference in Frankfurt, Germany, following the Governing Council's latest policy meeting on March 19, 2026. REUTERS/Jana Rodenbusch
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