Heurist Finance

ECB holds rates at 2.50% as energy shock lifts inflation risk and cuts growth outlook

ECB ·
ECB holds rates at 2.50% as energy shock lifts inflation risk and cuts growth outlook
  • The ECB kept its deposit facility rate at 2.50%, the main refinancing rate at 2.65% and the marginal lending rate at 2.90% on 29 October 2026.
  • The Governing Council said energy prices have continued to rise, posing upside risks to inflation and downside risks to growth.
  • The Council said underlying inflation has remained broadly stable so far and wages do not show a material response at this stage.
  • The Council said financing conditions have tightened since its last meeting, which is likely to weigh on inflation and growth.
  • The Council is not pre-committing to a rate path and will take a data-dependent, meeting-by-meeting approach.

Quotes

“Energy prices have continued to rise, posing upside risks to the inflation outlook and downside risks to the growth outlook.”— Governing Council of the European Central Bank
“The Governing Council is not pre-committing to a particular rate path.”— Governing Council of the European Central Bank

Sources

ECB holds rates at 2.50% as energy shock lifts inflation risk and cuts growth outlook — Heurist Finance