The European Central Bank keeps interest rates unchanged

The European Central Bank kept interest rates unchanged at 0% and interest on deposits at -0.5%. It indicated that the asset purchase program is expected to end in the third quarter of 2022.

The European Central claimed that the war in Ukraine has “severely affected” the euro zone economy.

Eurozone inflation hit an all-time high of 7.5% last month following sharp hikes in oil prices, but some policymakers continue to argue that price growth could slip off the ECB’s 2% target in the medium term.

The European Central Bank maintains interest rates in negative territory since 2014 and it hasn’t increased them for more than 10 years, but a jump in inflation has made the increase in the deposit rate minus 0.5% an increasingly debated topic.

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