At its meeting earlier today, Thursday, October 29, the ECB decided to maintain its interest rates and monetary policy unchanged, as expected. The three main policy rates remain at 2.50%, the main refinancing operation rate at 2.65%, and the lending facility rate at 2.90%.

The ECB’s policy statement noted that energy prices continued to rise, posing upside risks to the inflation outlook and downside risks to the growth outlook.

The Governing Council remains committed to addressing the current high level of uncertainty and will adopt a data-driven approach, making decisions at each meeting to determine the appropriate monetary policy stance. Its decisions will be based on its assessment of the inflation outlook and the risks surrounding it.

The Asset Purchase Programme (APP) and the Pandemic Emergency Purchase Programme (PEPP) are being phased out at a measured and anticipated pace, as the Eurosystem has ceased reinvesting capital payments from maturing securities.

Markets are awaiting the ECB President’s comments and questions from journalists at the press conference, which is expected to begin in approximately 45 minutes.