ECB Holds Interest Rates Steady, Cites Inflation Near Target

The Governing Council of the European Central Bank (ECB) decided today, October 30, 2025, to maintain the three key ECB interest rates unchanged, a move closely watched by markets and consumers across the Eurozone.

The interest rates on the deposit facility, the main refinancing operations, and the marginal lending facility will remain at 2.00%, 2.15%, and 2.40% respectively. The ECB stated that inflation remains close to its 2% medium-term target, and the overall assessment of the inflation outlook is broadly unchanged. This decision comes as the Eurozone economy continues to grow despite ongoing global economic headwinds.

The ECB highlighted the robust labour market, solid private sector balance sheets, and the impact of previous interest rate cuts as key factors supporting economic resilience. However, the central bank acknowledged continued uncertainty stemming from global trade disputes and geopolitical tensions, factors that could influence future monetary policy. Understanding monetary policy is crucial for assessing the economic outlook. The decision impacts borrowing costs for businesses and individuals, potentially influencing investment and spending.

The Governing Council emphasized a data-dependent approach to future decisions, stating it will assess incoming economic and financial data, underlying inflation dynamics, and the strength of monetary policy transmission. The ECB also reaffirmed its commitment to ensuring inflation stabilizes at the 2% target in the medium term, and noted the availability of tools like the Transmission Protection Instrument to address market disruptions. For further information on global economic conditions, see the International Monetary Fund website.

ECB President will elaborate on the considerations behind these decisions at a press conference starting at 14:45 CET today.