ECB Governing Council Press Conference - 19 March 2026

The Governing Council today decided to keep the three key ECB interest rates unchanged. It is determined to ensure that inflation stabilises at the 2% target in the medium term. The war in the Middle East has made the outlook significantly more uncertain, creating upside risks for inflation and downside risks for economic growth. It will have a material impact on near-term inflation through higher energy prices. Its medium-term implications will depend both on the intensity and duration of the conflict and on how energy prices affect consumer prices and the economy. The Governing Council is well positioned to navigate this uncertainty. Inflation has been at around the 2% target, longer-term inflation expectations are well anchored, and the economy has shown resilience over recent quarters. The incoming information in the period ahead will help the Governing Council assess how the war will affect the inflation outlook and the risks surrounding it. The Governing Council is closely monitoring the situation, and its data-dependent approach will help it set monetary policy as appropriate. #ECB LEAVES DEPOSIT FACILITY RATE AT 2.00%; EST. 2.00% - BBG *ECB LEAVES MAIN REFINANCING RATE AT 2.15%; EST. 2.15% *ECB LEAVES MARGINAL LENDING FACILITY AT 2.40%; EST. 2.40% *ECB: WAR POSES UPSIDE INFLATION RISKS, DOWNSIDE GROWTH RISKS *ECB TO DECIDE BASED ON CORE INFLATION,… ECB follows Bank of England with interest rate hold as Iran war intensifies The European Central Bank (ECB) has followed the Bank of England (BoE) and the US Federal Reserve in keeping interest rates on hold. The deposit rate has been left at 2%, the main refinancing rate at 2.15% and the marginal lending facility at 2.40% amid concerns that the ongoing conflict in the Middle East could drive up inflation through higher energy prices. Investors will now focus on ECB president Christine Lagarde’s remarks during the press conference at 1.45pm for signals on the future path of policy. Inflation in the eurozone stood at 1.9% in February, just below the central bank’s 2% target. However, markets have scaled back expectations for rate cuts in 2026, with growing bets on one or two rate rises this year.