The European Central BankKey interest rates have remained unchanged in spite of record inflation.

The benchmark refinancing interest of the central bank remains at 0.0%. Its marginal lending rate is at 0.25%, and its deposit rate was at -0.5%.

This comes as the ECB faces increased pressure. Inflation has been rising month by month in the 19 member region, reaching a record of 5.1% in January.

The bank states that the higher inflation rate will diminish over the next year. However, many economists question whether the consumer price will rise for longer. An extended period with higher inflation may put at risk the economic recovery.

Christine Lagarde (ECB President) will present the latest monetary decision of the bank at 1.30 p.m. U.K.

Cedric Gemehl (economist at Gavekal Research) said that a higher and more consistent eurozone inflation would increase pressure on the ECB, which is expected to promise a hawkish pivot.

But the bottom line here is that inflation in eurozone is driven not by excess demand but rather energy prices and supply side constraints. This suggests that the ECB will continue to focus on returning monetary policy to its pre-pandemic settings, and that any swing towards outright hawkishness remains a distant prospect,” he added.

It is breaking news and is currently being updated.