At its meeting earlier today, Thursday, April 30, the ECB decided to maintain its three key interest rates at their current levels: the deposit rate at 2%, the main refinancing operation rate at 2.15%, and the lending facility rate at 2.40%. This marks the seventh consecutive meeting where the ECB has held its rates steady.

In its policy statement, the ECB said the Governing Council remains committed to ensuring that inflation remains at the 2% target over the medium term, despite heightened uncertainty due to the conflict in the Middle East, rising energy prices, and the risks of higher inflation and slower economic growth.

The Governing Council remains well-positioned to address the current uncertainty. The euro area entered this period of higher energy prices with inflation close to the 2% target, but the long-term inflation outlook remains stable, although short-term inflation expectations have risen significantly.

The Governing Council will continue to monitor the situation closely and will adopt a data-driven approach, making decisions at each meeting to determine the appropriate monetary policy stance.

The ECB’s asset purchase program (AP) and pandemic emergency purchase program (PEPP) are declining at a measured and expected pace as the European system has stopped reinvesting capital payments from maturing securities.

Markets are awaiting the ECB president’s comments and question-and-answer session with journalists at the press conference, which is expected to begin in approximately 45 minutes.