ECB holds rates as energy risks complicate the outlook

The European Central Bank left its three key rates unchanged, keeping the rate banks earn on overnight deposits at 2.5% after raising borrowing costs in September. The pause is not a declaration that the inflation fight is over: higher energy prices can spread through transport, production and household bills, eventually lifting the broader prices and wages policymakers watch. At the same time, higher rates and more expensive market borrowing are already making credit costlier, which can curb spending and investment while growth faces fresh downside risks. The ECB said it will decide meeting by meeting, leaving incoming data to show whether it needs to tighten again or can wait.