ECB holds rates at 2.5%, euro weakens as inflation risks rise

The European Central Bank kept interest rates unchanged on Thursday, leaving the deposit rate at 2.5%. The ECB warned that surging energy costs increase inflation risk. The euro fell after the decision — EUR/USD dropped 0.27% to 1.1122, and EUR/PLN lost 0.25% to 4.3930. Markets are pricing in a possible rate hike in December.