ECB Keeps Interest Rates Unchanged Amid Ongoing Energy Price Uncertainty
The European Central Bank (ECB) has decided to keep its three key interest rates unchanged at its meeting on July 23, 2026. This decision comes as energy prices remain volatile and are expected to stay above pre-conflict levels.
According to the ECB's economic projections, inflation in the euro area is likely to remain high due to the ongoing energy shock. The bank predicts that energy price inflation will continue to drive up broader inflation through indirect and second-round effects.
The ECB has reiterated its commitment to setting monetary policy to ensure that inflation stabilizes at 2% target in the medium term. To achieve this, the bank will closely monitor the intensity and duration of the energy shock and its impact on prices and wages.