The European Central Bank left its interest rates unchanged on Thursday, as expected, even as policymakers expressed increasing concern over the impact of the surging energy prices and the intensifying war in the Middle East.
Euro area consumers' inflation expectations for the one year ahead and those for the three-year horizon surged in March as crude oil price continue to rise due to the ongoing conflict in the Middle East, results of a monthly survey by the European Central Bank showed on Tuesday.
Small business morale in the U.S. sunk in March as the conflict in the Middle East led to a surge in oil prices that raised cost concern for consumers and businesses, results of a survey by the National Federation of Independent Business showed on Tuesday.
The European Central Bank left its key interest rates unchanged on Thursday, as expected, for a sixth policy session in a row amid the significant uncertainty caused by the war in the Middle East and raised the inflation forecasts for euro area as policymakers remain concerned about the impact of surging crude oil price, and expressed their readiness to act if needed.
Germany's import prices rose at a faster than expected pace in January but remained lower in year-on-year comparison due to the steep fall in energy prices, preliminary data from the statistical office Destatis showed on Friday.
Consumer confidence in the United Kingdom dropped to a three-month low in February, defying expectations for a modest improvement, amid a deterioration in households' assessment of their personal financial situation, results of a survey showed on Friday. The U.K. consumer confidence index fell to -19 from -16 in January, the Consumer Confidence Barometer survey by the GfK revealed.
Thailand's central bank lowered its key interest rate by 25 basis points to 1.00 percent in a 4-2 vote on Wednesday, defying expectations for no change. Two members of the Monetary Policy Committee voted to maintain the policy rate at 1.25 percent as they judged that the current monetary policy stance remains consistent with the economic and inflation outlook.
The European Central Bank on Thursday left interest rates unchanged for a fifth policy session in a row, as expected, despite concerns over a challenging global economy that is pressured by the ongoing trade wars and geopolitical conflicts.