[French Bond Market Panic Outweighs Inflation Concerns: ECB Keeps Rates Unchanged] October 29th, Jinshi Data – Despite concerns about rising energy costs, the European Central Bank (ECB) followed the Federal Reserve on Thursday, deciding to keep interest rates unchanged. The bank maintained its key deposit rate at 2.5%, a decision in line with market expectations. In September, the ECB raised rates by 25 basis points, citing continued increases in oil and gas prices. While recent energy cost increases have continued to push inflation higher, France's growing debt problem may make the ECB reluctant to further tighten monetary policy. Last week, the yield on French 10-year government bonds broke through 5% for the first time in over 20 years. Rising bond yields may, to some extent, fulfill the central bank's tightening task, as higher yields increase borrowing costs for households and businesses, thereby suppressing demand and helping to lower inflation. Henry Cook, an economist at Mitsubishi UFJ Financial Group, said before the ECB's decision: "Although the energy market environment has become more unfavorable since September, policymakers' sense of urgency to take immediate action has diminished after the rise in sovereign bond yields."