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.
243 Articles
243 Articles
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.
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.
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.
High prices for heating and refuelling as a result of the Iran war drive up consumer prices. Nevertheless, the European Central Bank is waiting for the moment. This is also due to the tense situation in France.
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