European Central Bank keeps key interest rate at record high

Comments made by the bank’s president Christine Lagarde will be closely watched for clues on when cuts might begin (Michael Probst/AP)

The European Central Bank has left its key interest rate at a record high as it waits for more confirmation that toxic inflation is under control for good – even as high borrowing costs drag on the stalled economy.

The decision comes as central banks around the world, including the US Federal Reserve, are trying to judge whether inflation has been tamed to the point that they can start cutting rates – making it cheaper for consumers and businesses to borrow, spend and invest – and avoid an economic slowdown that throws people out of their jobs.