ECB Holds Interest Rates Steady Amid Rising Euro Inflation

The European Central Bank (ECB) maintained its key interest rates unchanged on Thursday, despite inflation in Europe rising at its fastest pace since 2008.

The ECB stated that the main refinancing operations and the marginal lending facility and deposit facility will remain at 0.00%, 0.25% and -0.50% respectively.

This decision comes as the euro area inflation rate reached 3.4% in September on an annual basis, driven by higher energy prices. The EU's annual inflation rate also jumped to 3.6% in September, up from 3.2% in August.

The ECB plans to continue net asset purchases under its Pandemic Emergency Purchase Program (PEPP) until at least the end of March 2022 or until it judges that the coronavirus crisis phase is over.