The European Central Bank’s Governing Council has kept key interest rates unchanged and monitors energy price volatility and inflation risks to guide future monetary policy decisions.
The Governing Council of the European Central Bank has decided to keep the three key interest rates unchanged: the deposit facility at 2.25%, the main refinancing operations at 2.40%, and the marginal lending facility at 2.65%.
The outlook for energy prices remains volatile but is close to the baseline of the June Eurosystem staff projections and above pre-conflict levels. Uncertainty remains high, and the full inflationary impact of the energy shock has yet to materialize. The Council is closely monitoring the shock’s intensity, duration, and effects.
The Governing Council is committed to ensuring inflation stabilizes at 2% in the medium term and will follow a data-dependent, meeting-by-meeting approach for policy decisions. Interest rate decisions will depend on inflation outlook assessments, economic and financial data, underlying inflation dynamics, and monetary policy transmission strength. The Council is not pre-committing to a specific rate path.
The asset purchase programmes (APP and PEPP) are decreasing at a measured pace as the Eurosystem no longer reinvests principal payments from maturing securities.
The Governing Council remains ready to adjust all instruments within its mandate to achieve the 2% inflation target and ensure effective monetary policy transmission. The Transmission Protection Instrument is available to counter market disruptions that threaten policy transmission across the euro area.
ECB President will comment on these decisions at a press conference starting at 14:45 CET today.
