The European Central Bank kept its deposit rate at 2% during Thursday’s policy meeting, as widely expected.
The rate has remained at this level for over two years after eight cuts from a 4% peak.
Other key rates were also unchanged: main refinancing at 2.15% and marginal lending at 2.40%.
ECB President Christine Lagarde said inflation is near the 2% target and is projected to stabilize in the medium term.
Flash data showed eurozone prices rose 2.1% in August, following 2% readings in June and July.
Despite stable inflation, the bloc faces challenges including political uncertainty in France, affecting investments.
The EU-US trade agreement provides some clarity, but its full impact on the economy remains to be seen.
Oxford Economics predicts 0.8% eurozone growth in 2026 and inflation dipping below 2%, with a possible December rate cut.
Lagarde will address the bloc’s fiscal outlook in a press briefing later today.
ECB Holds Key Deposit Rate at 2% as Inflation Stabilizes
Andrew Rogers
Andrew Rogers is a freelance journalist based in Beijing, China, with over 15 years of experience covering Politics, World Affairs, Business, Health, Technology, Finance, Lifestyle, and Culture. He earned his degree in Communication and Journalism from the University of Florida. Over the course of his career, he has contributed to major outlets such as The Miami Herald, CNN, and USA Today. Known for his clear and engaging reporting, Andrew delivers accurate and timely news that keeps readers informed on both national and international developments.
