ECB Holds Rates Amid High Uncertainty and Energy Price Concerns

The European Central Bank (ECB) maintained its benchmark interest rate at 2.25%, as anticipated, citing persistent high uncertainty. While eurozone inflation eased to 2.8% in June from 3.2% in May, the central bank noted that the ongoing Middle East conflict and its impact on energy prices are likely to keep inflation above the 2% target into the first half of 2027. Despite the unanimous decision to hold rates, some governors considered a hike.