ECB holds rates with Iran war’s impact still unfolding

Christine Lagarde: 'The economic outlook is highly uncertain and will depend on how long the war in the Middle East will last, how strongly it affects energy and other commodity markets, as well as global supply chains.' Picture: Alex Kraus/Bloomberg

The European Central Bank kept interest rates unchanged, with officials signalling they need more time to assess the extent of the Iran war’s jolt to the economy.

The deposit rate was left at 2%, where it’s been since June 2025 and in line with the predictions of all analysts in a Bloomberg survey. The ECB offered no guidance on future decisions, reiterating it will act one meeting at a time based on information as it arrives.