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European Central Bank Keeps Interest Rates Unchanged

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The European Central Bank's Governing Council left its three key interest rates unchanged at its meeting on Thursday, noting that the outlook for energy prices is well above the levels recorded before the Middle East conflict.

As widely expected, the deposit facility rate was kept at 2.25%, while the interest rates on the main refinancing operations and marginal lending facility were respectively maintained at 2.40% and 2.65%.

The ECB said uncertainty remains high, with the full inflationary impact of the energy shock arising from the ongoing war still unknown.

"The Governing Council is therefore closely monitoring the intensity and duration of the shock, as well as its indirect and second-round effects," the central bank noted, reiterating its commitment to ensure that the inflation rate stabilizes at its 2% medium-term target.

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