ECB Halts Rate Moves as Middle East War Elevates Inflation Risks

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Source: Forex Factory
TL;DR Summary

The ECB left its three key rates unchanged (deposit 2.00%, main refinancing 2.15%, marginal lending 2.40%), aiming for 2% inflation in the medium term; the ongoing Middle East conflict adds uncertainty and upside inflation risk via higher energy prices, with medium‑term effects depending on conflict intensity and energy pass‑through, and markets await Lagarde’s press conference for further guidance.

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