ECB Keeps Deposit Rate at 2% as Inflation Nears Target

The European Central Bank left its key deposit rate unchanged at 2%, matching analysts’ expectations.
The decision followed the EU-US trade agreement and came as eurozone inflation remained close to the 2% target.
Rates for refinancing operations and marginal lending were also held steady at 2.15% and 2.40%.
The ECB has cut its deposit rate eight times since June 2024, lowering it from 4% to 2%.
President Christine Lagarde said inflation projections point to stability around 2% in the medium term.
Recent data showed prices rising 2.1% in August after holding at 2% in June and July.
Despite stability, the bloc faces political uncertainty in France and sluggish investment growth.
Experts said the EU-US trade deal reduced risks but weak exports and investment still cloud the outlook.
Oxford Economics forecasts 0.8% growth in 2026 and inflation below 2% next year.
They expect one possible rate cut in December, though the ECB may also keep rates steady.