ECB Holds Key Deposit Rate at 2% Amid Stable Inflation

The European Central Bank kept its deposit rate unchanged at 2% during Thursday’s monetary policy meeting.
Other key rates were also held steady: main refinancing at 2.15% and marginal lending at 2.40%.
The deposit rate has stayed at its lowest level in over two years following eight cuts since June 2024.
ECB President Christine Lagarde said inflation is stabilizing around 2%, the bank’s medium-term target.
Flash estimates showed prices rose 2.1% in August, after 2% readings in June and July.
The EU-US trade deal provides more clarity, though the ECB has yet to assess its full impact.
Political uncertainty in France and weak global demand remain risks for eurozone investment and growth.
Oxford Economics forecasts 0.8% eurozone growth in 2026, with inflation dipping below 2% next year.
Analysts predict the ECB may cut rates once more in December, though it could also hold steady.
Lagarde will address the bloc’s fiscal outlook in a press briefing later today.