The ECB holds its deposit rate at two and a half percent as energy prices keep rising

The European Central Bank, the ECB, left its three key interest rates unchanged on 29 October. The deposit rate stays at two and a half percent. The bank says energy prices have kept rising. That adds upside risk to inflation and downside risk to growth. Underlying inflation has been broadly stable so far and wages have not reacted much.

The main refinancing rate stays at 2.65 percent and the marginal lending rate at 2.90 percent. The Governing Council repeats that it decides meeting by meeting and does not commit to a path in advance. Its bond portfolios from the asset purchase programmes keep shrinking as securities mature. The Transmission Protection Instrument remains available if spreads move in a disorderly way.