Central Banks

ECB to Hold as It Weighs Iran War’s Inflation Threat

WATCH: The European Central Bank and the Bank of England are both expected to keep interest rates unchanged on Thursday. Jana Randow and Morwenna Coniam report.Source: Bloomberg

The European Central Bank is set to keep interest rates unchanged as it gauges how much of an inflation shock the war in Iran will deliver.

The deposit rate will be held at 2% on Thursday — where its been since last June — according to a unanimous Bloomberg survey. While most economists see borrowing costs staying there through year-end, traders are betting on at least one hike.