Institution: Data does not yet support the European Central Bank raising interest rates; it will remain on hold in the coming months.

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BlockBeats News, April 30 — Felix Schmidt, Chief Economist at Berenberg, stated that, as expected, the European Central Bank did not raise interest rates. The bank’s statement was very brief, with almost no surprises. The economic data released today is not yet sufficient to support a rate hike. Economic growth is weaker than expected, and although inflation is rising, it has lost some momentum. So far, inflation has been entirely driven by the direct impact of energy prices. The European Central Bank will observe the significant extent of the indirect effects over the coming months.

AFS Group Research Director Arne Petimezas said that there was nothing new in the European Central Bank Governing Council’s statement, except to state an obvious fact: the shock is more severe than expected in the March baseline scenario, and we are very likely in an adverse scenario. (Jin10)

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