Europe’s central bank holds rate steady amid swings in oil prices
Summary
The European Central Bank (ECB) kept its main interest rate at 2.25% due to uncertainty about how unstable oil prices will affect inflation. The ECB is waiting to see more data before deciding on future rate changes, as oil prices have been swinging because of conflicts affecting oil shipping routes.Key Facts
- The ECB kept its benchmark interest rate steady at 2.25% on Thursday.
- The previous meeting on June 11 saw a 0.25% rate increase to fight inflation caused by rising oil prices.
- Oil prices have been unstable due to the US-Iran conflict and disruptions in the Strait of Hormuz, a key oil shipping route.
- A ceasefire was announced but quickly fell apart, causing oil prices to drop then rise again.
- Inflation in the eurozone was 2.8% annually in June, down from 3.2% in May.
- ECB President Christine Lagarde said the bank decides on rates meeting by meeting based on new data.
- Brent crude oil prices rose above $98 per barrel following renewed conflict and attacks near key shipping routes.
- The ECB may consider raising rates again at its next meeting on September 10.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
