ECB holds rates amid uncertainty

The European Central Bank maintained its key deposit rate at 2% during its latest meeting in Frankfurt, citing the need to assess the full impact of the Iran war on the eurozone.

President Christine Lagarde warned that the economic outlook is "highly uncertain" as soaring energy prices push inflation toward 3%.

While growth in the bloc remains weak at just 0.1%, policymakers signaled that a rate hike in June remains a distinct possibility if supply chain disruptions persist.

The decision mirrors similar cautious stances taken by the Federal Reserve and the Bank of England this week.