● ECB HOLDS RATE STEADY AS INFLATION HITS 3.8%

The European Central Bank kept its deposit rate unchanged at 2.50% on Thursday, even as euro area inflation jumped to 3.8% in September from 3.2% in August, nearly double the ECB's 2% target. President Christine Lagarde said energy costs drove the spike and warned that prolonged high prices could spread into wages and broader costs. The Governing Council left all three key rates unchanged, betting the surge proves temporary rather than broad-based. $EUR traders now turn to December's meeting to see if persistent inflation forces the ECB's hand.