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.

Just in | ECB President Lagarde Advocates for Temporary, Targeted Fiscal Measures in Response to Energy Crisis. Just in | ECB President Lagarde Affirms Core Inflation Indicators Align with 2% Target. ECB'S LAGARDE: CORPORATE PROFITS RECOVERED, LABOUR COSTS ROSE || WAGE INDICATORS POINT TO CONTINUED MODERATION || INCREASE IN ENERGY PRICES WILL DRIVE INFLATION ABOVE 2% IN NEAR TERM || INDIRECT EFFECTS WOULD REQUIRE CLOSE MONITORING ECB's Pres Lagarde: Risks Tilted To Downside For Growth Outlook - Investment Should Grow - War Is Disrupting Commodity Markets, Weighing On Confidence ECB'S PRES LAGARDE: SHORT NERM RATES HAVE RISEN NOTABLY - RISKS TO INFLATION ARE TILTED TO UPSIDE ESPECIALLY IN EAR TERM - WAR IN MIDDLE EAST TIGHTENED FINANCIAL CONDITIONS ...

ECB's President Lagarde: The ECB is now more attentive to risks around the outlook. ECB'S LAGARDE: CORE AT 2.1% IN 2028, INCLUDING ETS2 AND BASE, SECOND-ROUND EFFECTS. ... ECB'S PRESIDENT LAGARDE: THE LABOUR MARKET IS SOLID BUT NOT AS HOT AS IN 2022. ECB'S LAGARDE: INFLATION EXPECTATIONS HAVE A LOT TO DO WITH MEMORIES OF HOUSEHOLDS AND CORPORATES || PEOPLE'S REACTION FUNCTION WILL BE INFORMED BY FRESH MEMORIES OF INFLATION || SCENARIOS DON'T FACTOR IN ANY MONEATRY POLICY MEASURES