Thursday 19/March/2026 – 10:49 AM
Today, Thursday, the European Central Bank announces the decision of the bank’s Board of Governors meeting regarding… InterestIn light of the rise in oil prices as a result of the war in the Middle East.
The inflation rate in the euro zone reached 1.9% in February, below the European Central Bank’s maximum target of 2%, but fears of a possible rise in prices are increasing sharply due to the US-Israeli war against Iran, which has pushed global oil and natural gas prices to rise by more than 40% since the beginning of this month.
Financial markets expect the Central Bank’s Board of Governors, based in Frankfurt, to adopt a wait-and-see approach, while keeping the key interest rate at 2%, according to the German news agency dpa.
New forecasts for growth and inflation in the euro area
The chief expert at the European Central Bank, Philip Lane, warned of the consequences of the continuation of the war in Iran, which may exacerbate inflation and curb economic growth. Along with the interest rate decision, the European Central Bank is scheduled to issue new forecasts for growth and inflation in the euro zone, which includes 21 European Union countries, which is a difficult task given the uncertainty surrounding the current situation.
The central bank is keen to avoid being late in its reaction to any potential new rise in prices. After the Russian invasion of Ukraine in 2022, the European Central Bank was criticized for underestimating the then price rises, and inflation in the euro zone at times rose to more than 10%.
Some experts expect to raise interest rates this summer in light of the current situation, and according to the President of the German Central Bank, Joachim Nagel, the European Central Bank’s Governing Council remains vigilant, and he said: “If there is a fundamental change in the inflation situation, we are fully prepared to respond.”
