ECB Maintains Interest Rates Amid Iran Conflict Risks
The European Central Bank kept the deposit rate at 2% on Thursday. It warned that the conflict in Iran is driving energy prices higher and weighing on growth.
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The European Central Bank (ECB) held its deposit rate at 2% on April 30 as conflict in Iran drives energy costs higher. The decision matches economist expectations and follows previous guidance from ECB President Christine Lagarde. Investors now price in three rate hikes to 2.75% over the next 12 months to combat rising prices.
The ECB maintained the rate for bank deposits at 2% while keeping borrowing rates at 2.15% and 2.40%. Policymakers warned that disruptions in the Strait of Hormuz are intensifying upside risks to inflation.
