The ECB said it would hold its key deposit rate at 4%, and that future rate decisions would be made in light of incoming economic and financial data. Some sources say the ECB is unlikely to reduce interest rates before the June 6 meeting because important data on wages will be published in May.

In its economic forecast, the ECB reduced its inflation forecast for this year from 2.7% to 2.3%, which means the bank might achieve its 2% inflation target this year, instead of in 2025 as previously expected.

The ECB now forecasts that the Eurozone's GDP this year will increase 0.6%, less than the 0.8% the central bank predicted in December, 2023.