The European Central Bank (ECB) has decided to keep its three key interest rates unchanged amid rising energy prices that pose risks to both inflation and economic growth.

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FRANKFURT AM MAIN, 29 October 2026 – At the latest press conference, European Central Bank (ECB) President Christine Lagarde and Vice-President Boris Vujčić announced that the ECB has opted to maintain the current key interest rates. This decision comes as energy prices continue to rise, creating upward risks for inflation and downward risks for growth in the Eurozone.

Despite the ongoing energy crisis, Lagarde assured that underlying inflation has remained stable, with wage growth showing modest responses. The ECB remains committed to achieving a medium-term inflation target of 2% and will adopt a data-driven, meeting-by-meeting approach in assessing the need for future interest rate adjustments.

The economic activity in the Eurozone displayed growth in the third quarter, largely supported by recovery in services and increased investments in AI-related sectors. However, the recent hike in energy prices has negatively affected consumer confidence and could dampen future growth. The present unemployment rate stands at 6.4%, with a slight uptick in productivity noted.

Inflation figures showed a rise to 3.8% in September, largely driven by energy price inflation hitting 18.9%. The ECB has noted that the risk to both growth and inflation remains influenced significantly by external tensions, including the conflicts in the Middle East and Ukraine, which could further disrupt energy supplies and impact consumer spending.

As the press conference concluded, Lagarde emphasized the importance of fiscal sustainability and structural reforms to support economic resilience, ensuring a clear path forward as the ECB evaluates its policies against the evolving economic landscape.

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Read the full press release: ecb.europa.eu