The European Central Bank’s Governing Council has maintained interest rates and highlighted inflation risks due to energy prices, with decisions based on ongoing economic data and market conditions.
The Governing Council of the European Central Bank (ECB) has decided to keep the three key interest rates unchanged: the deposit facility at 2.00%, the main refinancing operations at 2.15%, and the marginal lending facility at 2.40%.
While incoming information aligns broadly with previous assessments of inflation outlook, risks to inflation have increased due to rising energy prices from the war in the Middle East. These developments could impact medium-term inflation and economic activity depending on the duration and intensity of the energy price shock and its secondary effects.
The ECB remains committed to ensuring inflation stabilizes at the 2% target in the medium term. The Council will monitor economic and financial data closely and adopt a data-dependent, meeting-by-meeting approach for future policy decisions, without pre-committing to a specific rate path.
The asset purchase programmes (APP and PEPP) are decreasing at a predictable pace, with no reinvestment of principal payments from maturing securities.
The Governing Council is prepared to adjust all instruments within its mandate to achieve inflation stability and ensure 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 ECB President will provide further comments during a press conference scheduled at 14:45 CET today.
