ECB keeps rates unchanged as inflation pressures rise
The European Central Bank kept interest rates unchanged on Thursday while noting rising inflation risks. Markets expect potential policy tightening by June.
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The European Central Bank (ECB) kept interest rates unchanged on Thursday as inflation concerns weighed on the decision. Markets fully price in at least two rate hikes by year-end, with money markets currently seeing a third move as likely but not certain, and Germany 2-year yields falling 6 bps to 2.65%. Investors are now shifting focus to a potential June liftoff to combat stagflationary pressures across the eurozone.
