ECB maintains interest rates amid inflation pressures, rising energy costs

BRUSSELS, (UrduPoint / Pakistan Point News / WAM - 30th Apr, 2026) The European Central Bank (ECB) has kept interest rates unchanged, a move in line with market expectations despite mounting inflationary pressures, rising energy prices, and increasing economic uncertainty.

The bank decided to maintain the deposit facility rate at 2%, a level that has remained steady since June of last year.

In a statement, the ECB noted that inflation risks are rising while economic growth has slowed significantly. It highlighted that the conflict in the middle East has driven up energy prices, placing additional burdens on households and businesses.

The bank pointed out that high energy costs are contributing to inflation and negatively impacting consumer and business confidence, warning that a prolonged conflict could further damage the European economy.

While the ECB aims to keep inflation near 2% over the medium term, current rates in the Eurozone remain above this target.

For now, the bank is adopting a "wait-and-see" approach, similar to other major central banks, as it seeks to balance curbing inflation with avoiding a deeper economic slowdown. Market attention now shifts to the June meeting, with growing expectations of a potential rate hike if inflationary pressures persist.