“The incoming information has broadly confirmed its previous assessment of the medium-term inflation outlook,” the Governing Council said Thursday in a statement. “Tight financing conditions are dampening demand, and this is helping to push down inflation.”
The European Central Bank kept interest rates on hold for a third straight meeting and stuck with wording that suggests cuts may still be some way off.
The deposit rate was left at a record-high 4% — as predicted by all economists surveyed by Bloomberg. The ECB repeated that maintaining this level of borrowing costs for sufficiently long will make a “substantial contribution” to taming consumer prices.
