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[BUSINESS] · Germany, France, Italy, Greece, Cyprus · 14 sources

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ECB holds interest rates amid energy price volatility

The European Central Bank (ECB) has decided to keep its three key interest rates unchanged following its latest monetary policy meeting. The deposit facility rate remains at 2.50 percent, the main refinancing operations rate is held at 2.65 percent, and the marginal lending facility rate is held at 2.90 percent.

The decision comes as Eurozone consumer inflation (HICP) rose to 3.8 percent year-on-year in September, up from 3.2 percent in August. This increase was driven largely by energy inflation, which reached 18.9 percent. While core inflation has remained relatively stable and wage growth has not yet shown a significant reaction, the ECB warned that energy price volatility poses risks to both inflation and economic growth.

ECB President Christine Lagarde noted that energy prices rose beyond previous September projections, which could cause inflation to remain above target for several quarters. Although the bank has paused rate hikes, market analysts and some ECB officials suggest that further increases could occur in December if energy shocks lead to significant second-round effects on the broader economy.

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Bank of America · Christine Lagarde · European Central Bank · Eurostat · Eurozone · Fabio Panetta · France · Frankfurt · Iran

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