The European Central Bank is expected to keep key interest rates unchanged this Thursday, April 30, while evaluating whether the recent rise in inflation linked to the war in the Middle East will be persistent. President Christine Lagarde noted that the unpredictable nature of the conflict makes it difficult to forecast the duration of the economic shock. Consequently, the ECB is prioritizing a cautious, data-dependent approach, with markets now anticipating a potential move in June rather than April. Meanwhile, weak PMI data indicating a contraction in eurozone activity further complicates the decision, as the bank balances inflation risks against a fragile economic outlook.
ECB inclined to keep rates steady and assess geopolitical impact on inflation
Thursday, 30 April 2026RSS
Context & Explainers
Inflation measures how much general prices rise over time, usually reported year‑on‑year to compare a month with the same month a year earlier. Portugal’s National Institute of Statistics (INE) estimated January inflation at 1.9% year‑on‑year, down 0.3 percentage points from December, which affects rents, wages and everyday purchasing power for residents.
