The European Central Bank kept the benchmark interest rate at 1.25% today
No rise was expected today – after a 0.25% rise in April which was the first for 3 years
Many financial analysts don’t even expect rates to rise in June. A Wall Street Journal poll resulted in less than a quarter of those polled forecasting that the ECB rate will rise in June.
With inflation in the euro zone rising to 2.8% in April interest rates will probably go up soon to help meet the ECB’s inflation objective, which is to keep inflation “below, but close to” 2% over the medium term.