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 expected.
This is the lowest rate in over two years, unchanged since a 25-basis-point cut in June.
The ECB has lowered its key rate eight times since June 2024, from a 4% peak.
Other rates—main refinancing at 2.15% and marginal lending at 2.40%—were also left unchanged.
President Christine Lagarde said inflation is stabilizing at the ECB’s 2% medium-term target.
Flash estimates show eurozone prices rose 2.1% in August, following 2% readings in June and July.
The bloc faces challenges, including political turmoil in France and uncertainty in global demand.
The recent EU-US trade deal may provide clarity, though its full impact remains under review.
Oxford Economics forecasts 0.8% eurozone growth in 2026, with inflation dipping below 2% next year.
The ECB may cut rates once more in December, but holding them steady remains possible.