Monetary policy decisions
The ECB Governing Council left its three key rates unchanged, noting that rising energy prices raise upside inflation risks while posing downside risks to growth.
Original text
ENOriginally published by European Central Bank (in English). Reproduced in full, without modifications.
- PRESS RELEASE
Monetary policy decisions
29 October 2026
The Governing Council today decided to keep the three key ECB interest rates unchanged. Energy prices have continued to rise, posing upside risks to the inflation outlook and downside risks to the growth outlook. While the full effects of the energy shock are still unfolding, underlying inflation has remained broadly stable so far and wages do not show a material response at this stage. The increased magnitude and duration of the energy shock, as well as the implications for indirect and second-round effects, are likely to drive up inflation and lower growth. Financing conditions have tightened since the Governing Council’s last meeting, which is likely to weigh on inflation and growth. The Governing Council is committed to setting monetary policy to ensure that inflation stabilises at its 2% target in the medium term.
The Governing Council remains well positioned to navigate the current elevated uncertainty. It will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. In particular, the Governing Council’s interest rate decisions will be based on its assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission. The Governing Council is not pre-committing to a particular rate path.
Key ECB interest rates
The interest rates on the deposit facility, the main refinancing operations and the marginal lending facility will remain unchanged at 2.50%, 2.65% and 2.90% respectively.
Asset purchase programme (APP) and pandemic emergency purchase programme (PEPP)
The APP and PEPP portfolios are declining at a measured and predictable pace, as the Eurosystem no longer reinvests the principal payments from maturing securities.
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The Governing Council stands ready to adjust all of its instruments within its mandate to ensure that inflation stabilises at its 2% target in the medium term and to preserve the smooth functioning of monetary policy transmission. Moreover, the Transmission Protection Instrument is available to counter unwarranted, disorderly market dynamics that pose a serious threat to the transmission of monetary policy across all euro area countries, thus allowing the Governing Council to more effectively deliver on its price stability mandate.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:45 CET today.
Related topics
- Key ECB interest rates
- Inflation
- Monetary policy
- Asset purchase programme (APP)
- Pandemic emergency purchase programme (PEPP)
- Policies
- Euro area
Disclaimer
Please note that related topic tags are currently available for selected content only.
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View original publicationMarket impact
Keeping rates steady may help the euro remain relatively stable in the near term, but higher energy costs and tighter financing conditions could lead to modest euro depreciation against the dollar if growth outlook weakens.
Higher energy prices together with stricter financing could weigh on euro‑area equities, potentially spilling over to broader equity indices as uncertainty about inflation and growth persists.
Neuralis Cap analysis for informational purposes only. It does not constitute investment advice.
The summary and market-impact analysis were prepared by Neuralis Cap with AI assistance from the source text.
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