The European Central Bank (ECB) has maintained interest rates and affirmed its commitment to keeping them at high levels for an extended period to achieve the inflation target, CNBC reports.
This decision marks the third consecutive meeting with unchanged rates since the September increase. Despite challenges in the Eurozone economy, the ECB aims to lower inflation from 2.9% to 2% and is cautious about cutting rates too soon, potentially undoing existing tightening measures.
The Governing Council considers it premature to discuss rate cuts, remaining data-dependent rather than following a fixed calendar. Some ECB officials have pushed back against market expectations for rate reductions in the spring, emphasizing the need for first-quarter wage data.
