Calculator
You pay
PLN
PLN
    You buy
    USD
    USD
      Exchange rate:
      1 USD = 3.9855 PLN

      ECB keeps interest rates unchanged. What does this mean for the euro exchange rate?

      The ECB kept rates unchanged, but the market is still betting on a move in December

      The ECB (European Central Bank) left its three key interest rates unchanged in October. The deposit rate remained at 2,50%, the main refinancing rate stood at 2,65%, and the marginal lending rate stayed at 2,90%.

      The decision did not surprise the market. Expectations had already been for the October meeting to bring no further rate hike. The futures market was pricing in just a 3% chance of a 25 pb move.

      The central bank says energy prices are still rising. That increases risks for inflation and economic growth. The statement also said the ECB remains committed to bringing inflation back to its 2% medium-term target.

      For now, monetary policy in the euro area therefore remains in cautious mode. In September, the ECB raised rates for the second time this year by 25 pb, and the first hike came in June, also by 25 pb. Rates were left unchanged in July.

      Inflationary pressure has not gone away. In September, HICP (Harmonised Index of Consumer Prices) inflation in the euro area reached 3,8% and was the highest in three years. PKO BP analysts noted this morning that before making another move, the ECB wants to assess the impact of the previous rate hikes on the economy and how the energy shock is feeding through into core inflation and wages.

      The picture could be different at the December meeting. The next Governing Council decision-making meeting is scheduled for 16-17 December, and as of noon today, the market was pricing in nearly an 85% chance of a 25 pb rate hike.

      Sources

      1. European Central Bank (press releases)
      U.S. inflation in August 2026 at 3.4%, with no increase
      U.S. inflation in August 2026 at 3.4%, with no increase
      13.09.2026
      Read more
      Poland cuts interest rates amid rising inflation. What does this mean for the zloty exchange rate?
      Poland cuts interest rates amid rising inflation. What does this mean for the zloty exchange rate?
      22.09.2026
      Finance Forum in Wrocław, October 23-24, 2026 – free event
      Finance Forum in Wrocław, October 23-24, 2026 – free event
      02.10.2026
      Fitch raises Poland’s deficit forecast. What does that mean for the złoty?
      Fitch raises Poland’s deficit forecast. What does that mean for the złoty?
      14.10.2026
      Euro rate on October 23, 2026. EUR/PLN rises to 4,3864 zł
      Euro rate on October 23, 2026. EUR/PLN rises to 4,3864 zł
      23.10.2026
      To the list of articles