ECB Holds Firm on Interest Rates Amid Ongoing Inflation Concerns

The European Central Bank (ECB) has maintained its interest rates steady amid ongoing inflation uncertainty. At its July 23, 2026 meeting, the ECB kept the deposit facility rate at 2.25%, the main refinancing rate at 2.40%, and the marginal lending rate at 2.65%. The decision reflects concerns over volatile energy prices linked to the Middle East conflict.

The ECB noted that current energy prices are broadly in line with earlier forecasts, but stated that the full inflationary effects have yet to emerge. The Governing Council reaffirmed its commitment to returning inflation to its 2% medium-term target and emphasized that future monetary policy decisions will remain data-dependent.

The ECB also announced a continuation of the gradual reduction of its asset purchase portfolios. This decision is in line with the bank's goal of stabilizing prices and supporting economic growth.