The European Central Bank, following the Fed, kept rates unchanged amid the war
This is the sixth consecutive time the ECB has made such a decision
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The European Central Bank (ECB) said on Thursday that it will keep interest rates in the eurozone at 2% - for the sixth time in a row. Similar decisions were made earlier on March 19 by the Bank of England (where interest rates will remain at 3.75%), as well as - the Bank of Japan, the Central Bank of Sweden and the Swiss National Bank.
Eurozone inflation rose to 1.9% in February, picking up from the 1.7% growth rate recorded in the previous month. This is data before the escalation of the conflict in the Middle East, which led to a surge in oil and gas prices, Barron's points out.
By keeping interest rates unchanged for the sixth consecutive time, the ECB at the same time signaled that it is closely monitoring the risks associated with rising inflation, as well as rising oil and other energy prices, and is ready to take action if necessary, writes Reuters.
"[The war] will have a significant impact on short-term inflation through higher energy prices," the ECB said, emphasizing that "its medium-term effects will depend both on the intensity and duration of the conflict and on how energy prices affect consumer prices and the economy."
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