The ECB left interest rates unchanged at its first policy meeting of 2026, reiterating that inflation is expected to stabilize at its 2% target over the medium term. The interest rate on the main refinancing operations was maintained at 2.15%, while the deposit facility and marginal lending rates were kept at 2.0% and 2.4%, respectively. The ECB said the euro area economy remains resilient, but cautioned that the outlook remains uncertain, particularly due to global trade policy risks and ongoing geopolitical tensions. Speaking at the ECB press conference, President Lagarde reiterated that both the central bank and the euro area inflation outlook are in a “good place.” She warned that inflation figures may move unevenly in the months ahead, but emphasized that policy decisions should not be driven by any single data release. Lagarde also acknowledged that uncertainty around the inflation outlook is higher than normal, reflecting the volatility of the global policy environment.
