ECB meets expectations as rates held at 4%

Inflation dropped 'markedly'

The European Central Bank has voted to hold interest rates steady at 4% today (26 October), following clear guidance last month that the bank had ended its hiking cycle.

The central bank's governing council noted inflation had dropped "markedly" in September, falling from 5.2% in August to 4.3%. "Past interest rate increases continue to be transmitted forcefully into financing conditions," it said in a statement today. Economists forecast BoE to hold rates at 5.25% through to spring 2024 The ECB's hiking cycle began in July 2022, with ten consecutive hikes made to bring its deposit facility rate to 4%. Following the pause last month, it is widely expected that the central bank has ended its hiking cycle. In its decision today, the governing coun...