ECB Holds Key Deposit Rate at 2% Amid Stable Inflation

The European Central Bank kept its benchmark deposit rate at 2% during Thursday’s policy meeting.
Other rates were also unchanged: main refinancing at 2.15% and marginal lending at 2.40%.
The deposit rate has hovered at its lowest level in over two years since June 2024.
ECB President Christine Lagarde said inflation is near 2% and projections point to medium-term stability.
Flash estimates show eurozone prices rose 2.1% in August, following 2% readings in June and July.
The ECB’s decision follows the EU-US trade agreement, though the full impact on the economy remains unclear.
Political uncertainty in France could slow investments and affect eurozone growth in the near term.
Oxford Economics expects 0.8% growth in 2026, with inflation falling below 2%, and a possible December rate cut.
Lagarde will address the bloc’s fiscal outlook in a press briefing later today.