ECB Maintains Rates Amid Inflation Concerns, Market Speculation Grows

The European Central Bank (ECB) has decided to keep interest rates steady while downgrading its inflation forecasts. The ECB expects inflation to decline gradually over the next year before reaching its 2% target in 2025. The Central Bank also signaled an early conclusion to its bond purchase scheme as part of efforts to combat high inflation. The ECB expressed caution about economic growth in the near term but expects a recovery due to rising real incomes. The EUR/USD initially rose but struggled to hold onto gains.