The European Central Bank (ECB) has decided to maintain its key interest rate at a record high of 4%, signaling a commitment to battle inflation, Associated Press reports.
The ECB aims to balance containing inflation and avoiding economic recession due to higher borrowing costs. ECB President Christine Lagarde emphasized that no discussion or debate on rate cuts took place and stated that future decisions would ensure rates remain sufficiently restrictive.
Inflation in the Eurozone has fallen to 2.4% in November from a peak of 10.6% in October 2022. Despite lower inflation, the eurozone saw economic output shrink in the third quarter. Analysts predict potential rate cuts in 2023 to stimulate economic growth, but the timing remains uncertain.
