: European Central Bank pauses as inflation drops ‘markedly’
The European Central Bank on Thursday as expected kept interest rates steady, with the deposit rate staying at 4%. The last reading of eurozone manufacturing PMI was 43, on a scale where readings below 50 indicate deteriorating conditions, while consumer sentiment also is in negative territory. Inflation meanwhile has slowed to 4.3% year-over-year in September, from 5.2% in August. “Inflation is still expected to stay too high for too long, and domestic price pressures remain strong. At the same time, inflation dropped markedly in September, including due to strong base effects, and most measures of underlying inflation have continued to ease,” the ECB said.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.