ECB Keeps Interest Rates Unchanged 0 8

These rates have been in effect since June 11, 2025.

In a statement released after the meeting, the council stated that it intends to conduct a monetary policy that will ensure the stabilization of inflation at the target level of 2% in the medium term.

Although the information received largely confirms the council's previous assessment of inflation prospects, the risks of rising inflation and risks to growth have intensified, noted the ECB.

"Military actions in the Middle East have led to a sharp increase in energy prices, raising inflation and worsening economic sentiment. The impact of military actions on inflation and economic activity in the medium term will be determined by the intensity and duration of the energy price shock, as well as the scale of its indirect and secondary effects. The longer the military actions continue and high energy prices persist, the greater the potential impact on broader inflation and the economy," the statement said.

"At the beginning of this period of rising energy prices, inflation in the eurozone was at the target level of around 2%, and the economy had been resilient in recent quarters. Long-term inflation expectations remain stable, although short-term inflation expectations have shifted significantly upwards," the statement said.

The council will closely monitor the situation and determine appropriate monetary policy in accordance with the data, making decisions at each meeting. In particular, its decisions on interest rates will depend on the assessment of inflation prospects and the risks threatening it, taking into account the economic and financial data received, as well as the dynamics of core inflation and the strength of monetary policy transmission, the bank indicated.

The express estimate published on Thursday by the European Union's statistical office "Eurostat" indicates that annual inflation in the eurozone rose to 3% in April, up from 2.6% in March, marking the highest level since September 2023.