ECB Pauses Rate Hikes But Warns More Could Come as Inflation Eases Slightly

ECB held interest rates steady for the first time in over a year, halting its aggressive tightening campaign as inflation shows signs of easing.

ECB President Lagarde said inflation is still too high but some measures have declined. She noted rate hikes are dampening demand and helping curb price pressures.

Lagarde said the economy remains weak and will stay subdued as manufacturing, foreign demand, and consumer spending slow.

Rates were kept at 4% but Lagarde said this doesn't mean they won't hike again. Future moves will depend on incoming data.

The meeting was held in Athens days after Greece's debt got an investment grade rating, ending 13 years of junk bond status.