ECB keeps rates at 2.25%

The European Central Bank decided to hold interest rates at 2.25%, warning of the uncertainty caused by the energy price shock due to the ongoing war in the Middle East. It indicated that energy price forecasts remain highly volatile and significantly higher than pre-conflict levels, with close monitoring of their potential inflationary impacts. Currently, inflation in the Eurozone is approximately 3% annually, which is above the 2% target, while economic growth expectations for the region have been lowered to 0.8% this year.

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