ECB leaves interest rates on hold

(Sharecast News) - The European Central Bank left interest rates unchanged on Thursday, as widely expected. The bank's governing council, meeting in Frankfurt, left the main financing rate at 4.5%, the deposit facility rate at 4% and the marginal lending facility at 4.75%.

It noted: "While inflation has dropped in recent months, it is likely to pick up again temporarily in the near-term.

"Inflation is expected to decline gradually over the course of the next year, before approaching the 2% target in 2025."

The ECB now expects headline inflation to average 5.4% in 2023, 2.7% in 2021, 2.1% in 2025 and 1.9% in 2016.

Previously it forecast inflation to average 5.6% this year.