European Central Bank

ECB Holds Rates as Prolonged Energy Shock Raises Inflation and Growth Risks

Rates held as prolonged energy shock lifts inflation risks and clouds growth

• Deposit rate 2.50%; main refinancing 2.65%; marginal lending 2.90%
• Energy shock’s greater scale and duration risk higher inflation and weaker growth
• Underlying inflation broadly stable; wages show no material response so far
• Financing conditions have tightened; decisions remain data-dependent, meeting by meeting
• APP and PEPP portfolios continue to shrink as maturing securities are not reinvested

Original Press Release

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