Key Notes
- The ECB left its deposit, main refinancing and marginal lending rates at 2.50%, 2.65% and 2.90%, respectively.
- Rising energy prices pose inflation and growth risks, while underlying inflation has stayed broadly stable so far.
- The Governing Council retained its 2% medium-term target without committing to a future rate path.
The European Central Bank kept all three policy rates unchanged on October 29, holding its deposit facility rate at 2.50% while warning that rising energy prices threaten to push inflation higher and weaken economic growth.
The main refinancing rate remains 2.65%, and the marginal lending rate stays at 2.90%. The Governing Council’s decision leaves the levels introduced in September intact.
| ECB Policy Rate | Previous | October 29 |
|---|---|---|
| Deposit facility | 2.50% | 2.50% |
| Main refinancing operations | 2.65% | 2.65% |
| Marginal lending facility | 2.90% | 2.90% |
Energy Risks Rise as Underlying Inflation Holds Steady
The ECB said energy prices have continued to increase and that the full effects of the shock are still unfolding. Its greater size and duration could raise inflation through indirect effects and subsequent responses elsewhere in the economy, while reducing growth.
That warning is distinct from a claim that every inflation measure is already accelerating. The statement says underlying inflation has remained broadly stable so far, and wages have not shown a material response at this stage.
Officials also noted that financing conditions have tightened since the previous meeting. That tightening could restrain both inflation and activity, creating a counterweight to the energy shock.
Why the Three Rates Have Different Levels
The deposit facility rate pays banks for placing money with the central bank overnight. The ECB’s explainer identifies it as the rate used to steer the monetary-policy stance.
The main refinancing rate applies to banks borrowing central-bank funds for one week. The marginal lending facility provides overnight borrowing at a higher rate. The 2.65% figure therefore refers to one specific operation, rather than replacing the 2.50% deposit rate as the ECB’s policy-steering rate.
Banque de France’s rate history shows the current levels have applied since September 16, following an increase from 2.25%, 2.40% and 2.65%, respectively.
No Commitment to the Next Rate Move
The Governing Council reiterated its medium-term 2% inflation target and said decisions would remain dependent on incoming data and conditions at each meeting. It did not commit to a particular rate path.
Its asset-purchase and pandemic-emergency portfolios also continue to shrink as maturing principal is no longer reinvested. Holding policy rates steady does not reverse that balance-sheet runoff.
The decision follows the Federal Reserve’s October 28 rate hold, covered by CoinScreamer. Both central banks paused at this meeting, but their rate levels and economic assessments differ. Neither hold establishes that a rate cut will come next, and the ECB statement alone does not establish a particular reaction in Bitcoin or other crypto markets.
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