European Central Bank Holds Key Interest Rate as Inflation Risks Rise

Interest rates in Europe remain on hold for now.

This keeps local mortgage and borrowing costs steady in Denmark.

The European Central Bank kept its key interest rate unchanged on Thursday.

Rising energy prices pose a growing risk to inflation.

The central bank said underlying inflation remains largely stable.

Wages have not shown any significant reaction yet.

This pause follows earlier rate increases in June and September.

Tore Stramer is chief economist at the Danish Chamber of Commerce.

He said French public finance uncertainty gave the bank room to pause.

Broader rises in market interest rates also gave the bank flexibility.

However, Stramer warned that further interest rate increases remain possible.

He expects rising energy prices to prompt another rate hike in December.

This story was reported by Copenhagen Post.