ECB keeps rates on hold

The European Central Bank (ECB) on Thursday kept its key interest rates unchanged, saying eurozone inflation remains broadly under control.

All three benchmark rates stayed on hold, with the deposit facility rate -- the ECB's main policy rate -- maintained at 2.0 percent, where it has stood since the last rate cut in June.

The main refinancing operations rate and the marginal lending facility rate remained unchanged at 2.15 percent and 2.4 percent, respectively.

"Inflation is currently around the 2-percent medium-term target and the Governing Council's assessment of the inflation outlook is broadly unchanged," the central bank said in a statement.

According to the ECB staff's latest projections, euro-area inflation is expected to average 2.1 percent in 2025 and 1.7 percent in 2026. The bank also raised its eurozone economic growth forecast for 2025 to 1.2 percent, up from 0.9 percent in its June forecast.

South Korean President Lee Jae Myung said on Wednesday that Seoul firmly adheres to the one-China principle, in comments made ahead of his upcoming state visit to China.

The remarks were made in an interview with China Media Group (CMG). The visit is scheduled for Jan 4–7.

"The consensus reached between governments of the Republic of Korea and China when diplomatic relations were established continues to be the fundamental principle governing our relations, and its effectiveness remains steadfast. I want to clearly state that the ROK has always adhered to the one-China principle. Maintaining peace and stability in regional matters, including in Northeast Asia and concerning the Taiwan issue, holds significant importance to us," said Lee.

"The foundational relationship between the ROK and China was established on a very principled and fundamental basis from the beginning. It is clear that the ROK government has always adhered to this position and has never wavered from it. I believe that the sound development of ROK-China relations depends on both sides fully respecting each other's core interests and being mutually tolerant of each other's positions. In this context, we will, as always, uphold the one-China principle as the Taiwan issue is China's most fundamental concern," he said.