European Central Bank keeps interest rates unchanged

European Central Bank keeps interest rates unchanged as it maintains a cautious stance on inflation and energy prices. The ECB held its main interest rate at 2.25%, a decision described as widely expected after a rate increase in the previous month—the first rise in three years. In a statement, the ECB said uncertainty remains elevated and the full effect of the energy shock on inflation has not yet materialized. The Governing Council also said it is monitoring the intensity and duration of that shock and its indirect implications, including second-round effects. The move reflects the central bank’s focus on whether energy-driven price pressures will persist. By leaving policy unchanged, the ECB signals it needs more confirmation before adjusting rates again, even after last month’s shift.