ECB holds rates but it's not a 'non-event,' economists say. Here's why

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The European Central Bank on Thursday kept policy rates unchanged for the fifth consecutive meeting, with its key interest rate at 2%, in line with the bank’s target.

The ECB commented Thursday that the inflation trajectory and wider economic conditions did not warrant a move at this month’s meeting, but warned that the outlook was unpredictable.

“Inflation should stabilise at its 2% target in the medium term. The economy remains resilient in a challenging global environment. Low unemployment, solid private sector balance sheets, the gradual rollout of public spending on defence and infrastructure and the supportive effects of the past interest rate cuts are underpinning growth,” the central bank stated.

“At the same time, the outlook is still uncertain, owing particularly to ongoing global trade policy uncertainty and geopolitical tensions,” it added. The euro