European Central Bank Keeps Interest Rate at Record High

The European Central Bank kept its main interest rate at a record high of four percent today, Thursday, and indicated that core inflation continued to decline, partly due to rising borrowing costs. The European Central Bank stated, "The downward trend in core inflation has continued, and the impact of previous interest rate increases is strongly reflected in financing conditions." With today's decision, the European Central Bank has maintained the rate it pays on bank deposits, which is the benchmark for borrowing costs in the eurozone, at 4.0 percent, the highest level since the bank's inception, and confirmed that it will remain at this level for some time.