ECB Keeps Rates Steady as Latest Data Fail to Support a Hike

April 30 (UTC+8) — The European Central Bank left interest rates unchanged, a widely anticipated decision that drew little market surprise. Felix Schmidt, chief economist at Berenberg, said the ECB’s short statement offered few new signals and that the day’s economic releases did not provide sufficient grounds for a rate increase. He noted growth has undershot expectations and that, while inflation remains elevated, its upward momentum has eased. To date, inflation has been driven entirely by the direct impact of energy prices, with the ECB set to watch for potential indirect effects in the months ahead. Arne Petimezas, research director at AFS Group, said the Governing Council’s message largely reiterated existing concerns, pointing out that shocks have been harsher than assumed in the March baseline scenario and suggesting the economy is now tracking an adverse scenario. (Jin10) (Source: BlockBeats)