ECB holds key interest rates steady as energy price surge fuels inflation risks

The European Central Bank kept its three key interest rates unchanged on October 29, 2026, citing continued rises in energy prices that pose upside risks to inflation and downside risks to growth. Financing conditions have tightened since the last meeting. The ECB remains committed to bringing inflation to its 2% target in the medium term and will take a data-dependent, meeting-by-meeting approach.