The European Central Bank has kept its key interest rate on hold at a record high of 4 per cent as it signalled inflation was falling in line with its expectations.
The Frankfurt-based bank’s governing council maintained its deposit rate for the third consecutive meeting, repeating its determination to hold borrowing costs at “sufficiently restrictive levels for as long as necessary”.
Eurozone rate-setters acknowledged in a statement that inflation had fallen in recent months, but cited “tight financing conditions” as an important factor in helping to push down price growth.
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