Europe's central bank has left its key interest rate unchanged. The decision, which was widely expected, comes even as inflation continues to fall faster than expected.The European Central Bank kept interest rates at an all-time high of 4.5% on Thursday.

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The announcement is the fifth consecutive pause since October and was widely expected.

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The bank's rate-setting council said it would wait for confirmation that rapidly receding inflation is firmly under control before deciding to cut interest rates.

"Most measures of underlying inflation are easing... but domestic price pressures are strong and are keeping services price inflation high," it said.

ECB analysts will present new economic and inflation forecasts in June.

European Central Bank eyeing inflation

Major central banks including the ECB an the US Federal Reserve are weighing when receding inflation will let them cut rates.

Eurozone inflation slowed more than expected in March to 2.% — not far off the ECB's target of 2%.

In its statement on Thursday, the ECB said that "past interest rate increases continue to weigh on demand, which is helping to push down inflation."

It added that once its confident that inflation has reached target levels, "it would be appropriate to reduce the current level of monetary policy restriction."

zc/wmr (AFP, Reuters, dpa, AP)

(The above story first appeared on LatestLY on Apr 11, 2024 08:00 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).