The European Central Bank kept its key interest rates unchanged at today’s meeting of its Governing Council, as expected.

Thus, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit-taking facility will remain unchanged at 4.25%, 4.50% and 3.75% respectively.

As the ECB announced a short while ago, the Governing Council decided today to keep its three key interest rates unchanged as the latest data broadly support the Governing Council’s previous assessment of the medium-term inflation outlook.

While some underlying inflation indicators rose in May due to one-off factors, most indicators either remained stable or declined in June.

In line with expectations, the inflationary impact of high wage growth was offset by earnings.

Monetary policy has kept financing conditions restrictive.

At the same time, domestic price pressures remain high, services inflation is elevated, and headline inflation is likely to remain above target next year.

ECB President Christine Lagarde is expected to elaborate on the rationale for the decision later at a scheduled press conference.