European Central Bank declines to cut rates because ‘domestic price pressures are strong and are keeping services price inflation high’

The European Central Bank left its key interest rate benchmark unchanged Thursday, choosing to wait for confirmation that rapidly receding inflation is firmly under control before cutting rates to support an economy that’s struggling to grow.

Bank President Christine Lagarde said after the meeting that while “measures of underlying inflation are easing” price pressures remained strong and were keeping prices high in the services sector.