The European Central Bank kept its key interest rate on hold Thursday as it warned that risks to growth and inflation had “intensified” as a result of the war in the Middle East.
The central bank for the 21 countries that use the euro left its benchmark deposit rate at two per cent, where it has been since June last year.
Risks to the eurozone growth and inflation outlook have “intensified” due to the war in the Middle East and its impact on global energy supplies, the European Central Bank warned Thursday.
“The upside risks to inflation and the downside risks to growth have intensified,” the ECB said. “The longer the war continues and the longer energy prices remain high, the stronger the likely impact on broader inflation and the economy.”
Europe is running out of steam
Central bankers are starting to worry as the shutdown of the Persian Gulf – from…
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Source:
www.euractiv.com