As expected, the European Central Bank held policy rates steady today, extending its pause for a seventh straight meeting in the current easing cycle.

Soaring oil prices from the Iran war pushed inflation higher to 3% in Europe in April. And growth continued to underperform.

Inflation jumped in April while the euro zone economy expanded a meager 0.1% in the first quarter of the year, data showed on Thursday.

European Central Bank Governing Council Member Olli Rehn said it’s “clear” that monetary policy must react fast to any signs of inflation becoming entrenched in the economy through higher wages and prices.

The European Central Bank kept interest rates at 2% but signaled growing concern over inflation, now at 3% and driven higher by the Iran war’s impact on oil prices. Policymakers hinted at a likely rate hike in June to prevent second-round effects from ...

The European Central Bank kept interest rates on hold at its April meeting, despite a surge in inflation in the euro zone since the war in Iran began. The ECB's governing council opted to hold its benchmark deposit facility rate at 2% on Thursday.

Inflation expectations among euro-area consumers jumped across the board in March, a worrying sign for European Central Bank as it assesses the knock-on effects of the Iran war.

The ECB is increasingly likely to raise interest rates in June if energy prices remain high and the Iran-related conflict continues.

Olli Rehn signals a hawkish stance on ECB policy, reducing the likelihood of a rate cut in April 2026. Rate cut at April 2026 meeting at 0% YES.