The ECB kept its three key interest rates unchanged on October 29, leaving the deposit rate at 2.50%. It warned that a larger, longer energy shock is likely to raise inflation and weaken growth. Underlying inflation has remained broadly stable and wages have yet to show a material response, while tighter financing conditions could weigh on both inflation and activity. The Governing Council retained its meeting-by-meeting approach and made no commitment to a future rate path.
Related currencies / asset groups: EUR
The ECB kept the deposit facility, main refinancing and marginal lending rates unchanged at 2.50%, 2.65% and 2.90%, respectively.
European Central BankThe ECB says the increased magnitude and duration of the energy shock are likely to drive up inflation and lower growth.
European Central BankThe ECB says underlying inflation has remained broadly stable so far and wages do not show a material response at this stage.
European Central BankLimitation: Tighter financing conditions are likely to weigh on inflation and growth; the ECB is not pre-committing to a particular rate path.
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