ECB maintains interest rates amid inflation risks and energy price shocks

The Governing Council of the European Central Bank (ECB) has decided to keep the three key interest rates unchanged. The deposit facility rate remains at 2.00%, the main refinancing operations rate at 2.15%, and the marginal lending facility at 2.40%.

The decision reflects that incoming information aligns broadly with previous assessments of inflation outlook, though risks to inflation have increased due to rising energy prices caused by the Middle East conflict. The Council noted that the impact of the war on inflation and economic activity depends on the duration and intensity of energy price shocks and their indirect effects.

The ECB highlighted that the euro area entered this period with inflation around 2%, and the economy has shown resilience. Longer-term inflation expectations remain anchored, although short-term expectations have risen significantly.

The Governing Council will continue to monitor economic and financial data closely and will decide on monetary policy stance on a meeting-by-meeting basis. Its decisions will consider inflation outlook, risks, and the strength of monetary policy transmission. The Council is not committed to a specific rate path.

The asset purchase programmes (APP and PEPP) are declining at a measured pace, with no reinvestment of 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 counter disorderly market dynamics that threaten policy transmission across euro area countries.

ECB President will provide further comments during a press conference at 14:45 CET today.