ECB keeps interest rates on hold despite cut speculation

The ECB has kept interest rates on hold following the latest meeting of the governing council.

Ahead of yesterday’s ECB meeting, there had been speculation about a possible rate cut when the bank’s president, Mario Draghi, said on Wednesday that the “risks of inflation are currently very low over the medium term”.

“Some market participants had interpreted this as a dovish signal, even worthwhile breaking the so-called Purdah period ahead of ECB meetings. [Yesterday’s] press conference shows that the speculations were premature. The ECB’s bias remains unchanged.