ECB holds at 2.50% while energy complicates its next move
October's decision keeps the deposit rate unchanged. Rising energy costs and tighter credit pull the outlook in different directions.
October's decision keeps the deposit rate unchanged. Rising energy costs and tighter credit pull the outlook in different directions.
Original briefing based on European Central Bank - October monetary policy decision. Source date: October 29, 2026.
The ECB kept its deposit rate at 2.50% on October 29. Its refinancing and marginal lending rates stayed at 2.65% and 2.90%.
Officials identified higher energy costs as a threat to growth and price stability. They also reported tighter financing conditions since the preceding meeting.
The announcement offered no fixed path for subsequent decisions. This article replaces the earlier October 29 event preview.
Editorial perspective
Energy creates an awkward trade-off: weaker activity alone cannot tell policymakers whether inflation pressure will fade. The spread of higher costs into wages and services is therefore more informative than an isolated energy spike.
In our assessment, the hold buys time to distinguish a temporary shock from persistent inflation. It is neither a promise of cuts nor proof that another increase is inevitable.
Read the original European Central Bank - October monetary policy decision source ↗
Source date: October 29, 2026. Briefing checked: 2026-11-04 07:52 UTC. This is an independently written summary, not a full-text republication.
