ECB holds interest rates steady, warns of rising inflation risks

The ECB kept its key interest rates unchanged on Thursday, warning that continued energy price rises pose risks to inflation and growth.

• The ECB held the deposit facility rate at 2.50% and refinancing rates at 2.65% and 2.90%.
• The ECB warned that energy prices continued rising, posing upward inflation risks and downward growth risks.
• The decision came hours after ECB President Christine Lagarde announced she would leave her post early.
• France now pays a premium of 155 basis points over German borrowing for 10-year debt, tightening financing conditions.