Europe’s central bank expected to halt rate rises as conflict casts shadow

In Europe, inflation peaked at a painful 10.6% in October for the 20 countries that use the euro currency as Russia’s war in Ukraine took a toll

President of the European Central Bank Christine Lagarde at the bank’s headquarters (Michael Probst/AP)

The European Central Bank is ready to leave interest rates unchanged on Thursday for the first time in more than a year as the Israel-Hamas conflict spreads even more gloom over already downbeat prospects for Europe’s economy.

It would be the bank’s first meeting with no change after a torrid pace of 10 straight increases dating to July 2022 that pushed its key rate to a record-high 4%.