The central bank for the 20 countries that use the euro left the rate it pays on deposits at a record-high 4.0%, reaffirming that the current level of borrowing costs may just be enough to tame inflation if kept there "sufficiently long".
The ECB raised interest rates to a record high of 4% on Sept. 14. The Federal Reserve held interest rates at 5.25% to 5.5% on Wednesday, followed by the Bank of England holding rates at 5.25% on Thursday. Policymakers overriding message was that interest rates would remain at high levels until inflation was clearly heading back down to 2% and was likely to stay there
The central bank for the 20 countries that use the euro lifted its deposit rate to 4% from 3.75%, taking it to an all-time-high. Markets and economists expect the policy tightening move to be the ECB s last and now anticipate a lengthy pause, followed by rate cuts in the second half of next year
The European Central Bank will raise interest rates for the ninth time in a row on Thursday and keep the door open to further moves as persistent inflation and growing evidence of an economic downturn pull policymakers in opposing directions. Fighting off a historic surge in prices, the ECB has lifted borrowing costs by 4 percentage points since last July and essentially promised another quarter-point increase this month, making the outcome of Thursday s meeting a near-certainty.