At its meeting earlier today, Thursday, October 30, the ECB decided to maintain its three main interest rates at their current levels. The deposit rate remains at 2% the main refinancing operation rate at 2.15%, and the lending facility rate at 2.40%. This marks the third consecutive meeting where the ECB has held its rates steady, following seven consecutive rate cuts.

The ECB’s policy statement indicated that inflation remains close to its medium-term target of 2%. The Governing Council’s assessment of the inflation outlook remains unchanged. The Council reaffirms its commitment to ensuring that inflation remains at the 2% target and will adopt a data-driven, meeting-by-meeting approach to determining the appropriate policy stance. Decisions regarding interest rates, in particular, will be based on its assessment of the inflation outlook and the risks surrounding it. The ECB is prepared to adjust all of its instruments within its mandate to ensure inflation stability. 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.