ECB keeps interest rates at a record high

European Central Bank kept its key interest rate at a record high of 4% on Thursday and noted that core inflation continued to fall, thanks to also rising borrowing costs.

“The downward trend in core inflation has continued, and previous interest rate increases continue to be strongly transmitted to financing conditions,” the ECB said.

With Thursday’s decision, the European Central Bank left the interest rate it pays on bank deposits, which is the benchmark for borrowing costs in the euro zone, at 4.0 percent, which is its highest level since the establishment of the bank, and confirmed that it will remain at this level for some time.