ECB keeps rates unchanged as Euro remains pressured against British Pound

With ECB rates on hold, the Euro remains under pressure against the Pound.
Easing Budget worries and expectations of a November BoE rate increase support the British Pound.
Friday’s Eurozone growth figures and German inflation release are next in focus.

EUR/GBP is down 0.14% on Thursday. Trading around 0.8358 at the time of writing, the cross is near levels last recorded in April 2025. The European Central Bank’s (ECB) monetary policy announcement has offered no lift to the Euro (EUR) against the British Pound (GBP), which is outperforming its major counterparts.

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All three key ECB interest rates were left on hold, in line with broad expectations. The deposit facility rate stayed at 2.50%. Rates on the main refinancing operations and marginal lending facility remained at 2.65% and 2.90%, respectively.

Higher energy prices create upside inflation risks and downside growth risks, the central bank cautioned in its policy statement. Underlying inflation, however, had been broadly steady to date, with scant evidence of a material wage response to the energy shock. The Governing Council reaffirmed that policy would be set to ensure inflation stabilises at its 2% medium-term target.

Speaking at the press conference after the meeting, ECB President Christine Lagarde noted that “most gauges of long-term inflation expectations” were close to 2%, although “energy prices have risen beyond baseline,” she said. Lagarde also said the “ECB is unanimously seen as well positioned” and cautioned that “fiscal uncertainty may further tighten financial conditions.”

A December rate increase remains uncertain for traders following the ECB’s cautious message. Policymakers must weigh inflation risks against potential damage to growth, with fiscal uncertainty in France complicating that task. Most economists nevertheless continue to anticipate another rate rise before year-end.

Across currency markets, the British Pound is gaining as Budget worries recede. On Wednesday, UK Chancellor John Healey reaffirmed the government’s commitment to its fiscal rules in the Autumn Budget. Sterling also draws support from expectations that the Bank of England (BoE) could increase interest rates on November 5.

Friday brings the next key data releases: preliminary third-quarter GDP and unemployment figures for the Eurozone, together with Germany’s preliminary October Consumer Price Index (CPI).

Pound Sterling: Today’s Currency Moves

Today’s percentage moves in the British Pound (GBP) against the major currencies listed appear in the table below. Its largest gain was against the Australian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.06%	-0.20%	-0.02%	-0.06%	0.38%	0.05%	-0.12%
EUR	0.06%		-0.13%	0.05%	-0.01%	0.45%	0.10%	-0.06%
GBP	0.20%	0.13%		0.19%	0.12%	0.59%	0.24%	0.06%
JPY	0.02%	-0.05%	-0.19%		-0.07%	0.38%	0.02%	-0.14%
CAD	0.06%	0.01%	-0.12%	0.07%		0.45%	0.11%	-0.06%
AUD	-0.38%	-0.45%	-0.59%	-0.38%	-0.45%		-0.34%	-0.52%
NZD	-0.05%	-0.10%	-0.24%	-0.02%	-0.11%	0.34%		-0.14%
CHF	0.12%	0.06%	-0.06%	0.14%	0.06%	0.52%	0.14%

Percentage movements between the major currencies are displayed in the heat map. Select the base currency in the left-hand column and the quote currency in the top row. Selecting the British Pound on the left and following its row across to the US Dollar, for instance, gives the percentage change for GBP (base)/USD (quote) in the intersecting cell.