Eurozone interest rates remain unchanged

The European Central Bank (ECB) is holding key interest rates unchanged, after hiking rates in June for the first time in almost three years.

The deposit rate, which is important for banks and savers in the eurozone, therefore remains at 2.25%, the ECB announced on Thursday after its regular Governing Council meeting.

“Uncertainty remains high and the full inflationary impact of the energy shock has yet to play out. The Governing Council is therefore closely monitoring the intensity and duration of the shock, as well as its indirect and second-round effects,” the bank said in a statement.

Experts believe a rate increase could be coming in September when the central bank has new projections on inflation and economic activity.

Meanwhile, the recent escalation in fighting between the US and Iran continues to pose the risk of price increases related in particular to the price of oil.

The ECB can curb inflation by raising interest rates, as this makes loans more expensive and slows demand. However, higher interest rates also place a burden on anyone looking to invest.