ECB Keeps Rates Unchanged as Inflation Pressures Grow
The ECB kept interest rates unchanged on Thursday while signaling concerns over rising inflation. Markets expect a potential hike in June as the bank monitors risks.
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The European Central Bank (ECB) kept interest rates unchanged on April 30 despite rising inflation concerns linked to conflict in Iran. Money markets now price in at least two rate hikes by year-end, with a third move possible. Investors are shifting focus to a potential June liftoff as energy prices drive stagflationary pressures across the eurozone.
The EUR/USD held at $1.169 following the midday announcement. In Germany, two-year bond yields fell 6 bps to 2.65%, while European equity indexes rose nearly 1%.
