In the interest rate announcement, which was in line with expectations, the ECB said risks of higher inflation have increased, while growth prospects have been dampened.
The ECB - which has held the deposit rate at 2.00 percent since the summer of 2025 - says inflation risk grows the longer the Iran war continues. But the ECB did not say in the announcement whether the next step will be stimulus with a rate cut or further inflation-fighting with a rate increase.
The central banks in the US and UK also left their policy rates unchanged on Wednesday and Thursday, respectively.
The Swedish Central Bank is also expected to leave the key interest rate unchanged - at 1.75 percent - in its announcement next Thursday.
