ECB Holds Key Deposit Rate at 2% as Inflation Stabilizes

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.