Monetary policy decisions

First read

The ECB Governing Council decided to keep the three key interest rates unchanged, with the deposit facility rate, main refinancing operations rate and marginal lending facility rate held at 2.50%, 2.65% and 2.90% respectively.

Continued rises in energy prices pose an upside risk to the inflation outlook and a downside risk to the growth outlook, and an increase in the scale and duration of the shock could push up inflation and weigh on growth.

Financing conditions have tightened since the last meeting and may put pressure on inflation and growth; the Governing Council will determine the monetary policy stance in a data-dependent, meeting-by-meeting manner and does not pre-commit to a specific interest rate path.

The APP and PEPP portfolios are being reduced at a predictable pace, the Eurosystem is no longer reinvesting principal payments from maturing securities, and the transmission protection instrument is available to address disorderly market dynamics that threaten the transmission of monetary policy.