ECB holds interest rates steady
The European Central Bank kept its deposit rate unchanged at 2.50% on October 29, in line with expectations.
The main refinancing rate remained at 2.65% and the marginal lending rate at 2.90%. Policymakers warned that rising oil and natural gas prices pose upside risks to inflation and downside risks to growth. Underlying inflation remained broadly stable, with no material wage response to higher energy costs.
Euro-area inflation reached 3.8% in September, well above the ECB's 2% target. The bank also noted that tighter financing conditions could weigh on growth and inflation. A December rate increase remains possible, although stress in French government bond markets may complicate further tightening.
Comments