The bank said it was 'closely monitoring the intensity and duration of the shock'
The European Central Bank on Thursday kept its key deposit rate unchanged at 2.25% and said it was “closely monitoring” the inflationary impact of the Middle East war amid fresh fighting.
“Uncertainty remains high, and the full inflationary impact of the energy shock has yet to play out,” the lender of last resort for the 21 countries that use the euro said.
“The governing council is therefore closely monitoring the intensity and duration of the shock.”
Fresh fighting in the Middle East and rising oil prices had put the ECB on alert ahead of its rate-setting meeting.
