ECB holds rates at 2% as eurozone inflation jumps to 3% on Iran war energy shock

The European Central Bank kept its deposit rate at 2% Thursday despite April inflation spiking to 3%, driven by surging energy costs from the Iran conflict. The ECB adopted a wait-and-see stance amid stagflation risk. EUR volatility likely as traders weigh rate-hike odds vs. growth slowdown; equities face headwinds from persistent inflation and frozen policy easing.