ECB Holds Interest Rate Steady Amid Ongoing Oil Price Volatility

The European Central Bank (ECB) has decided to maintain its benchmark interest rate at 2.25% amid uncertainty about how volatile energy prices will affect inflation.

This decision comes after a quarter-point hike in June, which was aimed at dampening the impact of higher oil prices on consumer prices.

Analysts say the bank may be taking a pause to gather more information as oil prices have been swinging wildly due to the US-Iran conflict and subsequent interruption of oil shipments through the Strait of Hormuz.

ECB President Christine Lagarde stated that 'uncertainty remains high and the full inflationary impact of the energy shock has yet to play out.'