European Central Bank keeps key interest rate on hold at 2.5%
Lagarde’s exit opens a leadership race as policymakers warn that energy costs and tighter financing conditions could keep inflation elevated.
- The Governing Council held key interest rates steady on Thursday, maintaining the European Central Bank 's deposit facility rate at 2.50 per cent, the main refinancing operations rate at 2.65 per cent, and the marginal lending facility rate at 2.90 per cent.
- Rising energy prices prompted the ECB to warn that costs are "likely to drive up inflation and lower growth," as energy prices drove inflation to 3.8 per cent, almost double the bank's 2 per cent target.
- ECB President Christine Lagarde announced she will step down in February 2027, nine months before her eight-year term expires. "I leave this institution with a sense of a good work done," Lagarde said.
- French 10-year borrowing costs climbed above 5 per cent last week due to investor concerns, leading Dutch bank ING to note that rising bond yields effectively "have taken over the ECB's job."
- While the ECB reaffirmed its Transmission Protection Instrument is "available to counter unwarranted, disorderly market dynamics," it repeated it is "not pre-committing to a particular rate path," stating future decisions depend on incoming data.
185 Articles
185 Articles
ECB holds interest rates steady as energy shock threatens inflation and growth
The European Central Bank (ECB) kept its three key interest rates unchanged on Thursday, as rising energy prices threaten to push inflation higher and weaken economic growth, hours after President Christine Lagarde announced she would step down before the end of her term. The decision leaves the ECB’s deposit facility rate at 2.50 per cent, […]
On Thursday 29 October, the European Central Bank authorities will hold a meeting to determine their next steps for their monetary policy.
The inflation in the euro area remains well above two percent. Nevertheless, the European Central Bank leaves the key interest rate at 2.5 percent. Markets are expected to increase in December.
Frankfurt (Germany), 29 Oct (EFE) .- The European Central Bank (ECB) kept interest rates on bank deposits at 2.5% on Thursday because wages do not show a substantive response to the rise in general inflation after energy prices have risen further. The ECB also left the weekly auction rate unchanged at 2.65 %, and the marginal lending facility, which lends banks to a day at 2.90 %. ‘Energy prices have continued to rise, posing upward risks to inf…
The ECB kept interest rates unchanged at 2.5% for deposit, warning that rising energy prices increased the risk of inflation and threatened growth, amid tighter financing conditions and data anticipation to determine future decisions.
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