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European Union flags flutter on the day European Central Bank (ECB) President Christine Lagarde speaks to reporters following the Governing Council's monetary policy meeting in Frankfurt, Germany September 12, 2024.
Jana Rodenbusch | Reuters
The European Central Bank kept interest rates on hold at its April meeting, despite a surge in inflation in the euro zone since the war in Iran began.
The ECB's governing council opted to hold its benchmark deposit facility rate at 2% on Thursday.
The decision came after flash data out Thursday showed inflation in the euro zone jumped to 3% in April, driven largely by a rise in energy costs in the region.
The ECB's forward guidance is being closely watched on Thursday.
ECB President Christine Lagarde said at the bank's last gathering a month ago that policymakers were ready to hike interest rates even if an expected jump in euro zone inflation proved temporary.
Economists say the bank's June meeting will be the one to watch, with a potential 25-basis-point increase to take its key interest rate to 2.25%.
This is a breaking news story, please check for further updates.
