ECB Holds Rates Steady Amid Oil Price Volatility

The European Central Bank (ECB) held interest rates steady at 2.25% amid uncertainty about how volatile energy prices will affect inflation.

The decision was made in response to swings in oil prices, which have fluctuated following the US-Iran war 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,' indicating that the bank is closely monitoring the situation.

Lagarde also addressed speculation about her future, saying 'you are not going to see the back of me before 2027' when asked if she would commit to serving out her full eight-year term as ECB President.