The European Central Bank voted to hold interest rates steady on Thursday, meeting market expectations, despite euro zone inflation rising to a three-year high.
It keeps the central bank's key rate, the deposit facility, at 2.5% following a 25 basis point hike in September .
In a statement, the institution's Governing Council said rising energy prices posed upside risks to the inflation outlook and downside risks to growth, but that underlying inflation and wages were so far broadly stable.
Financing conditions have tightened since the last meeting, which is likely to weigh on both inflation and growth, it added.
Headline inflation in the euro area hit 3.8% last month , the highest level since September 2023. Energy price inflation reached 18.8% amid continued turbulence in the Middle East.
This is breaking news. Please refresh for updates.
