The European Central Bank’s Governing Council has maintained its three main interest rates at current levels, emphasizing a data-dependent approach to future policy amid uncertain global conditions.
The Governing Council of the European Central Bank (ECB) has decided to keep the three key interest rates unchanged: the deposit facility rate at 2.00%, the main refinancing operations rate at 2.15%, and the marginal lending facility rate at 2.40%.
The Council’s assessment confirms that inflation is expected to stabilize at the 2% target in the medium term. The economy remains resilient despite global challenges, supported by low unemployment, solid private sector balance sheets, public spending on defense and infrastructure, and the effects of previous interest rate cuts.
However, the outlook remains uncertain due to ongoing global trade policy uncertainties and geopolitical tensions. The Governing Council will continue to adopt a data-dependent approach, making interest rate decisions based on inflation prospects, economic and financial data, and the dynamics of underlying inflation.
The ECB’s asset purchase programmes (APP and PEPP) are decreasing at a predictable pace, as the Eurosystem no longer reinvests principal payments from maturing securities.
The Governing Council is prepared to adjust all its instruments within its mandate to ensure inflation stabilizes at 2% and to maintain effective monetary policy transmission. The Transmission Protection Instrument remains available to counteract disorderly market dynamics that threaten monetary policy transmission across the euro area.
The President of the ECB will hold a press conference at 14:45 CET today to discuss these decisions.
