The European Central Bank held its basics firmly in today’s meeting (18.7.2024) of its Board of Directors as expected. In particular, the interest rate on principal refinancing operations and interest rates on the marginal lending facility and the ECB’s deposit facility will remain unchanged at 4.25%, 4.50% and 3.75% respectively. As the ECB announced just now, the Governing Council has decided today to keep its three main interest rates unchanged as the latest data broadly support the previous assessment of the Governing Council’s medium-term inflation prospects. While some indicators of underlying inflation increased in May due to exceptional factors, most indicators either remained stable or retreated in June. According to expectations, the inflationary impact of high wage growth was offset by profits. Monetary policy maintains the conditions of financing restrictive. At the same time, domestic price pressures are still high, service inflation is increased and general inflation is likely to remain above the target and next year. The rationale for the decision is expected to be analysed later by ECB President Christine Lagarde at the planned press conference.