The European Central Bank (ECB) Governing Council decided on 30 October 2025 to keep its three key interest rates unchanged, as inflation remains close to the 2% medium-term target and the overall economic outlook shows stability.
The deposit facility, main refinancing, and marginal lending facility rates remain at 2.00%, 2.15%, and 2.40%, respectively. The ECB noted that the euro area economy continues to grow despite a challenging global environment, supported by a strong labour market, solid private sector balance sheets, and the effects of earlier rate cuts.
However, the ECB acknowledged that global trade disputes and geopolitical tensions still create uncertainty. The Governing Council reaffirmed its commitment to ensuring inflation stabilises at 2% in the medium term, maintaining a data-dependent, meeting-by-meeting approach rather than committing to a fixed rate path.
The Asset Purchase Programme (APP) and the Pandemic Emergency Purchase Programme (PEPP) portfolios are continuing to decline gradually, as the ECB no longer reinvests proceeds from maturing securities.
The ECB also reiterated its readiness to adjust all instruments if necessary to maintain stable inflation and smooth monetary policy transmission. The Transmission Protection Instrument (TPI) remains available to counter any disorderly market conditions that could threaten monetary policy effectiveness.
ECB President Christine Lagarde is set to discuss the details behind these decisions at a press conference at 14:45 CET today.
