ECB holds rates at 2.25% as the reignited Iran war keeps a second hike in play
The central bank said it is watching energy-driven price pressures and remains ready to adjust policy if inflation risks spread beyond fuel costs.
- On Thursday, July 23, 2026, the European Central Bank kept its three key interest rates unchanged, leaving the deposit facility at 2.25 per cent, the main refinancing operations rate at 2.40 per cent, and the marginal lending facility rate at 2.65 per cent.
- Policymakers linked the decision to renewed geopolitical tensions in the Middle East and volatile energy markets, with the Governing Council warning that energy prices remain well above pre-conflict levels and could intensify inflationary pressures.
- Future rate decisions will be data-dependent, moving on a meeting-by-meeting basis, as the ECB stated, "The Governing Council is not pre-committing to a particular rate path."
- The Eurosystem continues reducing its Asset Purchase Programme and Pandemic Emergency Purchase Programme portfolios by ceasing reinvestments, while the Governing Council remains prepared to use the Transmission Protection Instrument to address disorderly market moves.
- Commitment to the 2 per cent inflation target remains central to policy, as the ECB said, "The Governing Council stands ready to adjust all of its instruments within its mandate to ensure that inflation stabilises at its 2 per cent target in the medium term.
154 Articles
154 Articles
In a totally unpredictable global context, the central bank has chosen the monetary status quo, waiting to know how the energy crisis is going to evolve, but its policy is already set: to take the usual measures to combat inflation, even if they are inadequate.
ECB Holds Interest Rates Steady, Economists Predict September Hike
The European Central Bank (ECB) held interest rates at their current level on July 23, but left the prospect of an increase in September open. Last month, the ECB raised interest rates for the first time since September 2023, moving to contain an energy-driven inflation shock triggered by the war in the Middle East, even as the eurozone economy shows signs of weakening. It lifted its three key rates by 25 basis points, taking the benchmark depos…
The European Central Bank (ECB) kept interest rates on Thursday at 2.25%, after inflation dropped in June to 2.8%, but it will wait for September, when it will hold its meeting in Berlin, for a possible further rise. ECB President Christine Lagarde said in a press conference that the Council ... Continue reading "European Central Bank maintains interest rates and waits for September for possible rise" The post European Central Bank maintains int…
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