ECB holds interest rates steady despite rising energy prices

The Governing Council of the European Central Bank (ECB) decided on 29 October 2026 to leave its three key interest rates unchanged. The decision comes amid continued increases in energy prices and uncertainty over inflation and economic growth in the euro area.

What are the current rates?

The rate on the deposit facility remains at 2,50%, the rate on the main refinancing operations at 2,65%, and the rate on the marginal lending facility at 2,90%. These are rates applied to central bank operations with commercial banks, not interest rates directly set for consumer loans or mortgages.

Higher energy prices cloud the outlook

In its official statement, the ECB says rising energy prices increase the risk of inflationary pressure while potentially weakening economic growth. According to the bank, underlying inflation has so far remained relatively stable, and wage developments have not shown a significant response to the energy shock.

The central bank also notes that financing conditions have tightened since its previous meeting. Changes in prices, costs and borrowing conditions can affect households and businesses, although their impact on individual banking products depends on additional factors.

No pre-committed path for interest rates

The ECB has reaffirmed its medium-term goal of stabilising inflation at around 2%. Future decisions will be taken meeting by meeting, based on incoming data, without a pre-set commitment to the direction of interest rates.

Photo: Kilian Karger / Unsplash. Illustrative Frankfurt skyline, not a photograph of the ECB meeting.

Source: European Central Bank — Monetary policy decisions, 29 October 2026.