ECB Holds Key Deposit Rate at 2% Amid Stable Inflation

The European Central Bank kept its key deposit rate at 2% during Thursday’s policy meeting, as widely expected.
The rate has remained at its lowest level in over two years since June 2024.
Other rates were also held steady: main refinancing at 2.15% and marginal lending at 2.40%.
ECB President Christine Lagarde said inflation is stabilizing at 2% in the medium term, near the target.
Flash data showed eurozone prices rose 2.1% in August, following 2% readings in June and July.
The ECB’s decision follows the EU-US trade agreement, though its impact on growth remains uncertain.
Political turmoil in France and weak global demand pose challenges to eurozone investment and growth.
Oxford Economics forecasts 0.8% eurozone growth in 2026, with inflation dipping below 2% next year.
Analysts expect a possible final rate cut in December, though the ECB may also keep rates unchanged.
Lagarde will address the bloc’s fiscal outlook and monetary policy in a press briefing later today.