ECB Holds Key Interest Rates Amid Ongoing Oil Price Volatility

The European Central Bank (ECB) has decided to keep its key interest rates unchanged amid rising oil prices and uncertainty caused by the Iran conflict.

Oil prices have surged due to the escalating tensions, with energy price inflation declining to 8.5 percent in June from 10.8 percent in May, according to the European Commission's statistical office.

The ECB noted that while energy prices are currently near their baseline projection and above pre-conflict levels, they may remain high into the first half of 2027, affecting inflation.