The European Central Bank has kept interest rates on hold, as expected, at its latest meeting on Thursday.
The central bank held its key deposit facility rate at 2% for the third consecutive time, having last cut rates in June. The trim, which coincided with euro zone inflation hitting the ECB’s target rate of 2%, was part of a rate-cutting cycle that has brought rates down from last year’s record high of 4%.
The ECB said in a statement Thursday that “inflation remains close to the 2% medium-term target and the Governing Council’s assessment of the inflation outlook is broadly unchanged.”
“The economy has continued to grow despite the challenging global environment. The robust labour market, solid private sector balance sheets and the Governing Council’s past interest rate cuts remain important sources of resilience,” it said.
It cautioned, however, that “the outlook is still uncertain, owing particularly to ongoing global trade disputes and geopolitical tensions.”
