10:34 AM EDT, 10/29/2026 (MT Newswires) -- The European Central Bank maintained its three key interest rates on Thursday but warned that uncertainty remains elevated amid rising energy prices, with upside risks to inflation and downside risks to economic growth. The deposit facility rate was kept at 2.50%, while the interest rates on the main refinancing operations and marginal lending facility were respectively maintained at 2.65% and 2.90%. The ECB Governing Council's decision was in line with market expectations. In its October meeting, the central bank said underlying inflation is still "broadly stable" thus far as the full effects of the energy shock continue to unfold. It also reaffirmed its commitment to ensure that the inflation rate stabilizes at its 2% medium-term target. "The increased magnitude and duration of the energy shock, as well as the implications for indirect and second-round effects, are likely to drive up inflation and lower growth," the ECB said. "Financing conditions have tightened since the Governing Council's last meeting, which is likely to weigh on inflation and growth." The rate move comes after Christine Lagarde announced earlier the same day her intention to step down as president of the ECB on Feb. 7, 2027. The ECB said her successor will be appointed by the European Council following a nomination process. Lagarde was appointed to the post in November 2019 for a nonrenewable eight-year term. "With Lagarde and Isabel Schnabel, two of the six ECB's Executive Board members will now leave before their respective ends of their terms in office. Some have argued that this might leave some bruises on the ECB as an institution, but we think that the ECB's reputation is stronger and more stable than that," ING said in a note. "Currently, the two main contenders for Lagarde's succession are Pablo Hernández de Cos from Spain and Klaas Knot from the Netherlands. Both excellent candidates who would bring a high level of monetary policy expertise to the table."

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.