The European Central Bank’s Governing Council left the deposit facility, main refinancing and marginal lending rates at 2.00%, 2.15% and 2.40% respectively, judging that while the overall inflation outlook remains broadly in line with earlier assessments, the Middle East war’s surge in energy prices has heightened upside risks to inflation and intensified downside risks to growth, warranting no immediate policy change. After four 25 bp cuts between January and June 2025 that lowered the deposit rate to 2.00%, the stance has been on hold, including at the 19 March meeting. The ECB confirmed that APP and PEPP portfolios will keep shrinking as maturing proceeds are no longer reinvested. Headline inflation had been hovering around the 2% target and long-term expectations stay anchored, but shorter-term expectations have risen markedly; the economy had proved resilient in recent quarters, yet sentiment is deteriorating. The Council will continue a data-dependent, meeting-by-meeting approach and reiterated its readiness to adjust all instruments, with the Transmission Protection Instrument available to counter unwarranted market stress.
European Central Bank 2026-04-30
European Central Bank leaves deposit, main refinancing and marginal lending rates unchanged at 2.00%, 2.15% and 2.40%
The European Central Bank left the deposit facility, main refinancing and marginal lending rates at 2.00%, 2.15% and 2.40% respectively, citing heightened energy-related inflation risks and weaker growth prospects stemming from the Middle East conflict. It will keep allowing APP and PEPP portfolios to run off and reiterated a data-dependent stance with the Transmission Protection Instrument available if needed.