The ECB leaves rates unchanged, with the deposit rate at 2.50%. What it means for fixed- and variable-rate loans and for the Livret A

On 29 October 2026 the Governing Council of the European Central Bank kept all three key interest rates where they were. The deposit facility rate stays at 2.50%, the main refinancing operations rate at 2.65% and the marginal lending facility rate at 2.90%. Rates had been raised twice earlier in 2026: according to the ECB's table, from 17 June and from 16 September, by 0.25 points each time.

Why the ECB held

The ECB's statement says energy prices have kept rising, which is a risk of higher inflation and weaker growth. At the same time, underlying inflation has been broadly stable so far and wages have not reacted in any material way. Another argument: financing conditions have tightened since the previous meeting, and that alone should weigh on both inflation and growth.

According to the ECB, euro area inflation was 3.8% in September (3.2% in August), with energy prices up 18.9% on a year earlier. The ECB's target is 2% over the medium term.

The ECB makes no promise about what comes next: decisions are taken meeting by meeting, based on incoming data, with no pre-set rate path.

How the ECB rate reaches someone in France

The ECB does not lend to individuals. Its rates are the price of money for banks, and banks set their own rates for customers. In the same statement the ECB notes that the average mortgage rate in the euro area rose to 3.6% in August (3.5% in July), and that demand for mortgages fell markedly in the third quarter because borrowing had become more expensive.

What happens next depends on the type of loan. Service-public distinguishes two:

• A fixed rate (taux fixe) stays the same for the whole term of the loan. It can only be changed by renegotiating with the bank (renégociation) or refinancing with another lender (rachat). An existing fixed-rate loan is not affected by the ECB's decision.
• A variable rate (taux variable, révisable) moves with a reference rate; service-public gives the euro area interbank rate as an example. Future repayments and the total cost of such a loan are not known in advance.

For a variable-rate loan, the bank must attach to its offer a notice setting out the conditions and terms under which the rate can change, plus an indicative simulation of how a rate change would affect the monthly repayments. These two documents are where a borrower can see what would happen to the repayment if rates go up.

Useful to know when taking out a loan now

• The reflection period is 10 calendar days, and it cannot be shortened. It starts the day after the offer is received; the offer can be accepted from the 11th day, by a dated and signed letter. Service-public's example: an offer received on 1 February can only be accepted from 12 February. The offer itself must remain valid for at least 30 calendar days.
• Every offer comes with a FISE, the standardised European information sheet. It makes offers from different banks easier to compare.
• There is a legal ceiling, the taux d'usure. The annual percentage rate of charge (TAEG) must not exceed it. There are several ceilings depending on the loan amount and term, and the Banque de France revises them every quarter.
• An existing loan can only be renegotiated if the bank agrees, and the bank may charge a fee for drawing up the amendment to the contract (avenant). When refinancing with another lender, the costs also include early repayment penalties on the old loan, the new lender's arrangement fees, the cost of the guarantee and possibly new borrower insurance. An avenant also comes with a reflection period of at least 10 calendar days.

And the Livret A?

The Livret A rate is set by the State. It is currently 1.7% a year and, under an arrêté of 28 July 2026, is fixed for the period from 1 August 2026 to 31 January 2027. The deposit ceiling for an individual is €22,950. So until the end of that period, today's ECB decision does not change what a Livret A earns.

Bottom line

No lending rules changed today, and the ECB is promising neither a rise nor a cut. Nothing changes for a borrower on a fixed rate. For anyone choosing a loan, the rules provide tools for comparison: the TAEG, the FISE and, for a variable rate, the mandatory simulation of how repayments would change.