Frankfurt, October 30, 2025: The European Central Bank (ECB) left interest rates unchanged on Thursday, maintaining its deposit facility rate at 2 percent, the main refinancing rate at 2.15 percent, and the marginal lending facility at 2.40 percent. The decision, made at the Governing Council’s meeting in Florence, marks the third consecutive time the ECB has held rates steady as the eurozone economy continues to show signs of resilience. In its official statement, the ECB said that inflation remains close to its 2 percent medium-term target and that its assessment of the inflation outlook remains broadly unchanged.
The bank noted that recent data confirm a continuation of moderate growth, supported by strong labor-market conditions, solid private-sector balance sheets, and the lagged effects of previous monetary easing. Preliminary figures for the third quarter of 2025 indicate that the eurozone economy expanded by 0.2 percent compared with the previous quarter and by 1.3 percent on an annual basis. The ECB said that domestic demand remains stable despite weaker global trade and geopolitical tensions. It also highlighted that energy prices have been less volatile in recent months, contributing to greater stability in consumer prices.
ECB President Christine Lagarde stated during the post-meeting press conference that the bank’s current monetary policy stance is appropriate for achieving its price stability mandate. She reiterated that the Governing Council will continue to make decisions based on incoming economic and financial data and will reassess its position at each meeting. Lagarde said that the ECB is not on a pre-set course and remains committed to ensuring that inflation stabilizes at the 2 percent target over the medium term.
Eurozone inflation holds close to target amid policy continuity
Headline inflation in the euro area stood at 2.2 percent in September, marginally above the ECB’s target. Core inflation, which excludes energy and food, also remained stable, signaling that underlying price pressures are contained. Wage growth across the bloc has moderated, and productivity levels have improved slightly, providing further evidence that inflation expectations remain well anchored. Financial markets reacted calmly to the ECB’s announcement. The euro declined slightly against the U.S. dollar, while government bond yields rose modestly. The yield on the benchmark German 10-year Bund moved higher by a few basis points, reflecting expectations of continued policy stability. Equity markets across the eurozone remained largely unchanged following the decision.
ECB remains ready to adjust tools in line with price trends
The ECB’s latest move comes after a series of rate reductions earlier this year that brought borrowing costs down from historically high levels. Those cuts were aimed at supporting growth and ensuring that inflation returned to the bank’s target after several years of elevated price pressures. The decision to hold rates indicates that policymakers see the current stance as balanced amid an improving inflation outlook and a steady economic recovery. With the eurozone economy maintaining modest growth and inflation near target, the ECB’s decision signals a period of monetary stability as it heads into the final quarter of 2025. The bank reiterated its readiness to adjust all instruments as necessary to maintain price stability and ensure the smooth transmission of monetary policy across the euro area.
The decision aligns with expectations from financial markets and economists, who anticipated that the ECB would keep rates unchanged while monitoring economic developments closely. As the eurozone continues to navigate a challenging global environment, the ECB’s steady hand reinforces confidence in the region’s gradual recovery and commitment to price stability, underscoring the bank’s role in sustaining financial resilience, supporting stable credit conditions, and maintaining investor confidence across member economies. – By EuroWire News Desk.