The European Central Bank has left its key interest rate unchanged amid signs consumer price increases are likely to hold near its target.
The ECB's Governing Council on Thursday said it will keep its benchmark deposit facility rate at 2 percent. It was the council's fourth straight policy meeting with no change in the key rate.
The bank also said it has reconfirmed that inflation should stabilize at its 2 percent target in the medium term. The eurozone consumer price index rose 2.1 percent in November.
ECB President Christine Lagarde said a rise in real income and business investment should support the economy. She also said that the bank cannot provide forward guidance on rates because the outlook is too uncertain.
She added, "A deterioration in global financial market sentiment could lead to tighter financing conditions, greater risk aversion and weaker growth."
Meanwhile, the Bank of England decided to cut its key interest rate to 3.75 percent. It was the first reduction since August. The decision reflects the bank's prediction that inflation will fall back toward its target more quickly.

Quiz 1:
What is the current benchmark deposit facility rate set by the European Central Bank?
A. 1.5 percent
B. 2 percent
C. 2.5 percent
D. 3 percent

Quiz 2:
According to the article, what is the predicted inflation rate for the Eurozone in the medium term?
A. 1.5 percent
B. 2.6 percent
C. 2 percent
D. 3.1 percent

Quiz 3:
What was the main reason cited for the Bank of England's decision to cut its key interest rate?
A. A prediction of faster decline in inflation.
B. An increase in real income.
C. Increased business investment.
D. A deterioration in global financial market sentiment.

[Answer block]
Answers:
Quiz 1: B
Quiz 2: C
Quiz 3: A