European Central Bank keeps its key interest rate at a record high. Now, when will it cut?

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank has decided to keep its key interest rate at a record high and will leave it there as long as needed to battle back inflation. That signaled cuts aren’t around the corner despite expectations the bank will act next year to support the shrinking economy. The decision Thursday follows similar outcomes this week from the U.S. Federal Reserve, Bank of England and Swiss National Bank to leave rates unchanged. Bank President Christine Lagarde said “we should absolutely not lower our guard” and that policymakers did not discuss rate cuts at all.