ECB Holds Rates at 2.00% — Unanimous Decision Despite Internal Hike Debate

The ECB Governing Council voted unanimously to hold its key interest rates unchanged: deposit facility rate at 2.00%, main refinancing operations at 2.15%, marginal lending facility at 2.40%. ECB President Christine Lagarde confirmed that a rate hike had been 'discussed at length' during the meeting due to surging energy prices driven by Middle East conflict, but the Council ultimately chose to maintain its current stance pending more data. Financial markets now price in multiple rate hikes later in 2026, with a likely first move expected at the June 2026 meeting. The decision came alongside continued ECB concern over energy price pass-through to core inflation.