ECB holds interest rates amid volatile economic environment

President of European Central Bank Christine Lagarde. Pic: AP Photo/Michael Probst

The European Central Bank (ECB) opted not to increase interest rates at the latest meeting of the Governing Council in Athens, but borrowing costs are set to stay high "for a sufficiently long duration".

Policymakers have given respite for mortgage customers, especially those with tracker mortgages, after European policymakers increased interest rates 10 times to 4.5% since July 2022 and the latest meeting signalled that this cycle is coming to an end.