ECB Holds Key Interest Rates Steady Amid Energy Uncertainty

The European Central Bank's Governing Council decided on July 23, 2026, to keep its three key interest rates unchanged. The deposit facility rate remains at 2.25%, the main refinancing operations rate at 2.40%, and the marginal lending facility rate at 2.65%. This decision was in line with market expectations, with the ECB reaffirming its commitment to its 2% inflation target and a data-dependent, meeting-by-meeting approach to monetary policy. The bank cited high energy price volatility and ongoing uncertainty from the Middle East conflict as key factors influencing its decision, noting that the full inflationary impact of the energy shock has yet to play out.