ECB Keeps Rates Steady as Energy Shock Tests Inflation Outlook
The European Central Bank left its three key rates unchanged (deposit facility 2.00%, main refinancing 2.15%, marginal lending 2.40%) amid a war-driven surge in energy prices that could lift inflation and weigh on growth. Inflation is around the 2% target but shorter-term expectations have risen, and policy will remain data-dependent. The APP and PEPP portfolios are not reinvesting principal payments, allowing them to decline gradually, and the Council stands ready to use all tools—including the Transmission Protection Instrument—to safeguard price stability; a press conference on the decision is scheduled for 14:45 CET.