The European Central Bank held all three of its key interest rates unchanged at its October 2025 monetary policy meeting, marking the third consecutive gathering at which the Governing Council opted to stand pat. The deposit facility rate remains at 2.00%, the main refinancing operations rate at 2.15%, and the marginal lending facility rate at 2.40%. The decision was announced on 30 October.
The Governing Council indicated it would continue to assess incoming economic and financial data at each meeting before determining whether further adjustments to the policy stance are warranted. Policymakers made no pre-commitment to a particular rate path, preserving the flexibility to respond in either direction as the euro area economic outlook develops over the coming months.
A THIRD CONSECUTIVE HOLD FOR THE EURO AREA
The three consecutive holds follow an earlier sequence of rate reductions that brought the deposit rate down from the peak levels reached during the tightening cycle.
The ECB has maintained throughout its communications that its overriding objective remains price stability in the medium term. The Governing Council said it is determined to ensure that inflation stabilises at its 2% target in the medium term, with its decisions based on its assessment of the inflation outlook and the risks surrounding it.
KEY RATES AND EURO AREA BANKS
For commercial banks operating across the euro area, the gap between the main refinancing operations rate at 2.15% and the marginal lending facility rate at 2.40% remains consistent with the operational framework the ECB introduced when it restructured the relationship between its key rates. The deposit facility rate at 2.00% continues to act as the effective floor for overnight money market rates, directly influencing the return on excess reserves that banks park at the central bank.
The Governing Council reaffirmed that it intends to continue following a data-dependent and meeting-by-meeting approach in determining the appropriate level and duration of its policy stance.