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.
ECB Keeps Deposit Rate at 2% as Inflation Nears Target
Andrew Rogers
Andrew Rogers is a freelance journalist based in the USA, with over 10 years of experience covering Politics, World Affairs, Business, Health, Technology, Finance, Lifestyle, and Culture. He earned his degree in Journalism from the University of Florida. Throughout his career, he has contributed to outlets such as The New York Times, CNN, and Reuters. Known for his clear reporting and in-depth analysis, Andrew delivers accurate and timely news that keeps readers informed on both national and international developments.
Add A Comment