By Tom Fairless

FRANKFURT--The European Central Bank held its key interest rate at a record high, signaling concerns about high inflation even as the eurozone economy flirts with recession.

Major central banks including the Federal Reserve late last year signaled that they could soon cut rates after long cycles of hikes as inflation cools from multidecade highs. That ignited a global rally in stock and bond markets. But more recently, policymakers urged investors not to expect too many cuts too soon, prompting markets to push back expectations of when central banks will reduce rates.

Write to Tom Fairless at tom.fairless@wsj.com

(END) Dow Jones Newswires

January 25, 2024 08:32 ET (13:32 GMT)