Europe's central bank halts rate hikes as war in the Middle East casts a shadow over the economy

The European Central Bank (ECB) has left interest rates unchanged for the first time in over a year amidst concerns over the Israel-Hamas war and the weakening European economy. The ECB's decision comes after a series of rate increases over the past year, which pushed its key rate to a record-high of 4%. Inflation in Europe has eased, but high prices have negatively impacted consumer spending. Worries about economic growth and the possibility of a recession are increasing. The ECB is taking a pause to assess the impact of previous rate hikes and monitor developments in the oil price.