On Thursday, the European Central Bank (ECB) announced its decision to keep the three key interest rates unchanged. The deposit facility rate remains at 2.00%, the main refinancing operations rate at 2.15%, and the marginal lending facility rate at 2.40%. This decision reflects the ECB's cautious approach amid increasing geopolitical instability and economic uncertainty due to the ongoing conflict in the Middle East.

The backdrop of the ECB's decision is influenced by rising oil prices on the global market, which could ripple through to consumer prices. Central banks in Western countries, including the ECB, have adopted a wait-and-see stance, in line with actions taken by the Bank of England and the U.S. Federal Reserve. Just a day earlier, the Federal Reserve also chose to keep its interest rates steady, acknowledging that the conflict in the Middle East is contributing to economic uncertainty.

With signs of economic slowdown emerging, the public is closely watching for a deceleration in inflation. The ECB's decision to maintain interest rates may suggest that it aims to navigate the current turbulent economic landscape while considering both the potential repercussions of geopolitical events and the domestic economic indicators.