ECB Keeps Key Interest Rates Unchanged: Inflation Stability at the Forefront

The European Central Bank (ECB) maintained its key interest rates unchanged, in line with market expectations. The deposit rate remained at 2.25%, while the refinancing and marginal lending rates stayed at 2.40% and 2.65% respectively. Despite the high volatility of energy prices following recent geopolitical tensions in the Middle East, the ECB expressed confidence in its ability to maintain inflation under control over the long term. This aligns with the projections published by Eurosystem's staff in June, despite current energy prices being significantly higher than pre-conflict levels. The ECB reiterated that it will continue to closely monitor the indirect effects of the energy price shock and any second-round consequences on the economy. Future decisions on monetary policy will be made based on data availability, without committing to a specific path for interest rates.