ECB Holds Interest Rates Steady Amid Ongoing Inflation Uncertainty

ECB Holds Interest Rates Steady Amid Ongoing Inflation Uncertainty

BULGARIA: The European Central Bank (ECB) kept its three key interest rates unchanged at its 23 July 2026 meeting, maintaining 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 continued uncertainty surrounding inflation, particularly due to volatile energy prices linked to the Middle East conflict. Although current energy prices remain broadly in line with earlier forecasts, the ECB noted 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 stated that future monetary policy decisions will remain data-dependent, while continuing the gradual reduction of its asset purchase portfolios. 

Source: ECB