ECB holds rates as energy costs raise inflation concerns

The European Central Bank kept interest rates unchanged on 29 October 2026, while warning that higher oil and gas prices could raise inflation and weigh on growth. President Christine Lagarde said policymakers had debated a hike but unanimously held rates; she also announced she would leave her post early.

• The ECB left rates unchanged and said rising energy prices posed upside risks to inflation and downside risks to growth.· 1 source
• Lagarde said the governing council discussed a rate increase but unanimously kept borrowing costs on hold, citing stable underlying inflation and heightened uncertainty.· 1 source
• Lagarde announced she would step down early; the article also reports that tighter financing conditions, particularly in France, may affect the ECB’s next decision.· 1 source