ECB Holds Key Deposit Rate at 2% as Inflation Nears Target

The European Central Bank kept its key deposit rate at 2% during Thursday’s monetary policy meeting.
The rate has remained at this level for more than two years after eight cuts since June 2024.
Other main rates were also unchanged: refinancing at 2.15% and marginal lending at 2.40%.
ECB President Christine Lagarde said inflation is stabilizing around the 2% medium-term target.
Flash estimates showed eurozone inflation at 2.1% in August, following 2% readings in June and July.
The EU-US trade agreement offers more clarity, but the ECB is yet to assess its full impact.
Political uncertainty in France and weak global demand continue to pose challenges for the eurozone economy.
Oxford Economics expects 0.8% growth in 2026 and predicts inflation will dip below 2% next year.
Analysts see a possible final rate cut in December, though the ECB could also leave rates unchanged.
Lagarde will discuss fiscal developments and economic outlook at a press briefing later today.