ECB maintains interest rates amid stable outlook and ongoing asset purchases

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%. These rates will remain in effect.

The Council’s updated assessment confirms that inflation is expected to stabilize at the 2% target in the medium term. The economy remains resilient despite global uncertainties, supported by low unemployment, solid private sector balance sheets, public spending on defense and infrastructure, and the effects of previous interest rate cuts.

The ECB will continue to follow a data-dependent, meeting-by-meeting approach to monetary policy decisions, assessing inflation outlook and risks based on incoming economic and financial data. The Governing Council emphasizes that it is not pre-committing to a specific rate path.

The Asset Purchase Programme (APP) and Pandemic Emergency Purchase Programme (PEPP) portfolios are decreasing at a measured pace, as the Eurosystem stops reinvesting principal payments from maturing securities.

The Governing Council remains ready to adjust all instruments within its mandate to ensure inflation stabilizes at 2% and to maintain effective monetary policy transmission. The Transmission Protection Instrument is available to counteract disorderly market dynamics that threaten monetary policy transmission across the euro area.

The ECB President will hold a press conference at 14:45 CET to discuss these decisions.