ECB keeps rates on hold
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The European Central Bank has held interest rates at 2% for a third straight meeting, even as inflation rises and growth slows across the eurozone. View on euronews
By Balazs Koranyi and Francesco Canepa FRANKFURT, April 30 (Reuters) - The European Central Bank left interest rates unchanged as expected on Thursday but signalled its rising concerns over soaring inflation,
The euro was last $1.169, little changed from where it stood before the ECB statement. Two-year bond yields across the bloc remained lower on the day with German yields last down 6 basis points at 2.
ECB kept rates steady but explicitly warned energy-driven inflation risks are rising while growth is weakening—classic setup for energy/energy-adjacent inflation beneficiaries to outperform as pricing power holds and real yields stay capped by growth fears.
In the market for Fed rate cuts predictions for 2026, the likelihood of no cuts taking place is currently priced as consistent with a decrease in such expectations. The WTI Crude Oil market suggests an increased probability of prices hitting $150 in May. Bitcoin markets remain unaffected.
European stocks edged higher on Thursday, reversing morning losses, as investors assessed more earnings and central bank moves.
The European Central Bank left interest rates unchanged as expected on Thursday but signalled its rising concerns over soaring inflation, bolstering bets it would lift rates several times this year with an initial move in June.
Traders on Thursday slightly tempered their bets that the European Central Bank will hike interest rates three times this year, after policymakers flagged the trade-off between rising inflation and the hit to growth from higher energy prices.