ECB Holds Interest Rates at Record Highs, Lowers Inflation Forecasts [Video]

The European Central Bank (ECB) on Thursday kept interest rates unchanged at record highs, even as it lowered its inflation forecasts.

Like the Federal Reserve, which has signaled it’s in no rush to cut interest rates, the ECB kept rates unchanged as it waits for inflation to reach its 2% target, noting that wages remain hot.

“Although most measures of underlying inflation have eased further, domestic price pressures remain high, in part owing to strong growth in wages,” the ECB said in a statement, noting that “restrictive” financing conditions and past rate hikes are weighing on demand and bringing down inflation.

The ECB said that it would hold its key deposit rate at 4%, and that future rate decisions would be made “in light of the incoming economic and financial data.”

The central bank said it had downwardly revised its 2024 inflation projection to reflect a lower contribution from energy prices. It said it …