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FinanceECB holds key interest rates unchanged, deposit facility rate at 2.25%
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On 23 July 2026, the European Central Bank's Governing Council decided to maintain the three key ECB interest rates unchanged: the deposit facility rate at 2.25%, the main refinancing operations rate at 2.40%, and the marginal lending facility rate at 2.65%. The decision comes amid high uncertainty driven by the conflict in the Middle East and volatile energy prices, which remain well above pre-conflict levels. The ECB acknowledges that the full inflationary impact of the energy shock has yet to materialize and is closely monitoring indirect and second-round effects. The central bank reaffirms its commitment to a data-dependent, meeting-by-meeting approach to monetary policy, with no pre-commitment to a specific rate path. The Asset Purchase Programme and Pandemic Emergency Purchase Programme portfolios continue to decline at a measured pace as reinvestments cease. The Transmission Protection Instrument remains available to counter unwarranted market dynamics threatening monetary policy transmission across the euro area.
Source report
The Governing Council today decided to keep the three key ECB interest rates unchanged. The outlook for energy prices, while highly volatile, currently stands close to the baseline of the June Eurosystem staff projections and well above the levels recorded prior to the conflict in the Middle East. Uncertainty remains high, and the full inflationary impact of the energy shock has yet to play out. The Governing Council is therefore closely monitoring the intensity and duration of the shock, as well as its indirect and second-round effects. The Governing Council is committed to setting monetary policy to ensure that inflation stabilises at its 2% target in the medium term.
With today’s decision, the Governing Council remains well positioned to navigate the uncertainty caused by the conflict. It will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. In particular, the Governing Council’s interest rate decisions will be based on its assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission. The Governing Council is not pre-committing to a particular rate path.
Key ECB Interest Rates
The interest rates on the deposit facility, the main refinancing operations, and the marginal lending facility will remain unchanged at 2.25%, 2.40%, and 2.65%, respectively.
Asset Purchase Programme (APP) and Pandemic Emergency Purchase Programme (PEPP)
The APP and PEPP portfolios are declining at a measured and predictable pace, as the Eurosystem no longer reinvests the principal payments from maturing securities.
The Governing Council stands ready to adjust all of its instruments within its mandate to ensure that inflation stabilises at its 2% target in the medium term and to preserve the smooth functioning of monetary policy transmission. Moreover, the Transmission Protection Instrument is available to counter unwarranted, disorderly market dynamics that pose a serious threat to the transmission of monetary policy across all euro area countries, thus allowing the Governing Council to more effectively deliver on its price stability mandate.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:45 CET today.
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ECB Holds Key Interest Rates Steady Amid Middle East Conflict and Energy Shock