The European Central Bank kept interest rates unchanged as expected on Thursday and gave no hints about its next move, arguing that domestic price pressures remain high and inflation will be above its target well into next year.

The ECB cut rates from record highs last month in a move that even some of its policymakers considered rushed after progress on lowering inflation to its 2% target stalled. With domestic inflation still stubbornly high and wage growth sticky, the bank is likely to be more cautious about a follow-up step.