ECB Maintains Key Interest Rates Amid Ongoing Economic Uncertainty

On July 23, 2026, the European Central Bank (ECB) announced that it will maintain its three key interest rates at current levels. The decision comes as the outlook for energy prices remains highly volatile, aligning closely with the baseline of the June Eurosystem staff projections, yet significantly above pre-conflict levels in the Middle East.

The Governing Council expressed concerns over the full inflationary impact of the energy shock, indicating that it is closely monitoring both the intensity and duration of the shock, as well as its indirect and second-round effects.

In its statement, the Council reaffirmed its commitment to ensuring that inflation stabilizes at the 2% target in the medium term. It emphasized a data-dependent approach to monetary policy, suggesting that future interest rate decisions will hinge on assessments of the inflation outlook and associated risks, taking into account incoming economic and financial data.

The key ECB interest rates remain unchanged at: - Deposit facility: 2.25% - Main refinancing operations: 2.40% - Marginal lending facility: 2.65%

Additionally, the Council noted that the Asset Purchase Programme (APP) and the Pandemic Emergency Purchase Programme (PEPP) portfolios are declining at a predictable pace, as the Eurosystem has ceased reinvesting principal payments from maturing securities.

The Governing Council reiterated its readiness to adjust all instruments within its mandate to ensure inflation stabilizes at the target and to maintain effective monetary policy transmission. The Transmission Protection Instrument is also available to address any disorderly market dynamics that could threaten this transmission across euro area countries.

The President of the ECB is scheduled to provide further insights into these decisions during a press conference at 14:45 CET today.