ECB holds interest rates steady but moves closer to implementing cuts

Policymakers may have been spooked by rising US inflation ahead of its monetary policy meeting today. 

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

The European Central Bank (ECB) kept its main lending rate unchanged at 4.5% at its meeting in Frankfurt today, but moved closer to an expected interest rate cut this summer.

The European financial regulator remained vague on when rate cuts will be implemented this year but said "the past interest rate increases continue to weigh on demand, which is helping to push down inflation."