ECB Keeps Interest Rates Unchanged in First Policy Meeting of 2026

The European Central Bank left interest rates unchanged at its first policy meeting of 2026, in line with expectations, reaffirming its view that inflation is on track to stabilize at the 2% target over the medium term.

The ECB maintained the rate on its main refinancing operations at 2.15%, while keeping the deposit facility rate at 2.0% and the marginal lending facility rate at 2.4%, the bank said on Thursday.

Policymakers noted that the euro area economy remains resilient, supported by low unemployment levels, strong private-sector balance sheets, and the gradual rollout of public spending on defense and infrastructure. The ECB also cited the lingering supportive effects of its previous rate cuts as a factor underpinning economic activity.

Despite the relatively solid backdrop, the central bank cautioned that the outlook remains uncertain. Officials highlighted risks stemming from global trade policy developments and ongoing geopolitical tensions, which could weigh on growth and inflation dynamics in the months ahead.

Investor attention has now shifted to the press conference of ECB President Christine Lagarde, as markets look for signals on how policymakers assess the impact of a stronger euro on inflation prospects and the future path of monetary policy.