European Central Bank keeps key interest rate on hold at 2.5%
The central bank warned that energy costs and tighter financing conditions could keep inflation elevated and slow growth as markets await a December move.
- 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.
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250 Articles
The European Central Bank (ECB) decided on Thursday to maintain interest on the deposit facility at 2.5%, as expected by the markets, despite accelerating inflation in the euro area to the highest level in the last three years. The institution opted for a break after increasing interest by 0.25 percentage points in September, CNBC broadcasts.
The Governing Council warns of rising risks to inflation and downwards for growth and its second-round impact Lagarde announces that he will leave the ECB presidency in February 2027
The ECB is in difficult waters: inflation is almost twice as high as desired, and with France one of the most important euro countries is in crisis. In this situation, Lagarde acknowledges the service.
ECB Holds Rates Amid Energy Shock, Inflation Risks
The European Central Bank held its key rates steady, including the deposit rate at 2.5%, as higher energy costs threaten to lift inflation while tighter financing and slowing growth weigh on the eurozone outlook. The decision comes amid added uncertainty over France and ECB President Christine Lagarde’s planned early departure; the bank said future policy decisions will depend on incoming data. · 22 sources across the spectrum on IJR News.
Although inflation remains persistent, the European Central Bank (ECB) pauses at the key interest rate: the central bankers headed by ECB boss Christine Lagarde left the deposit rate relevant to monetary policy taxation at 2.50 percent on Thursday. Economists had expected this on average.
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