ECB maintains interest rates and monitors energy price outlook

The Governing Council of the European Central Bank decided today 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 currently close to the baseline of the June Eurosystem staff projections, remaining 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 indirect effects.

The Governing Council is committed to ensuring inflation stabilizes at its 2% target in the medium term. It will follow a data-dependent, meeting-by-meeting approach, basing interest rate decisions on inflation outlook, 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 declining 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 ensure inflation stabilizes at 2% and to maintain effective monetary policy transmission. The Transmission Protection Instrument is available to counter unwarranted market disruptions that threaten monetary policy transmission across the euro area.

The ECB President will comment on these decisions at a press conference starting at 14:45 CET today.