The European Central Bank kept its deposit rate at 2% during Thursday’s monetary policy meeting.
The rate has stayed at its lowest level in over two years since a June cut of 25 basis points.
Other rates were unchanged: main refinancing at 2.15% and marginal lending at 2.40%.
Since June 2024, the ECB has cut its key rate eight times from a 4% record high.
President Christine Lagarde said medium-term inflation is stabilizing at the 2% target.
Flash estimates showed eurozone prices rose 2.1% in August, following 2% in June and July.
Challenges remain, including political turmoil in France and global demand weakness affecting growth.
The EU-US trade agreement offers some clarity, but the ECB has yet to assess its impact.
Oxford Economics predicts 0.8% eurozone growth in 2026, with inflation falling below 2%.
Analysts expect one final rate cut in December, though the ECB may choose to hold steady.
ECB Holds Key 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
