The Governing Council decided today that the three key interest rates of the ECB will remain unchanged. The key interest rates of the ECB will remain unchanged: the deposit facility rate is two percent, the rate for main refinancing operations is 2.15 percent, and the rate for the marginal lending facility is 2.40 percent. New information largely confirms the Governing Council’s previous assessment of inflation prospects. However, positive risks for inflation and negative risks for economic growth have strengthened. The Governing Council is committed to establishing a monetary policy that will achieve the stabilization of inflation at the target level of two percent in the medium term.
The war in the Middle East has led to a sharp increase in energy prices, which has raised inflation and worsened economic sentiment. The consequences of the war for medium-term inflation and economic activity will depend on the strength and duration of the energy price shock, as well as the extent of indirect effects and second-round effects. The longer the war and high energy prices last, the stronger the likely impact on broader inflation and the economy.
