ECB Keeps Key Deposit Rate at 2% Amid Stable Inflation

The European Central Bank left its key deposit rate unchanged at 2% during Thursday’s monetary policy meeting.
The rate has remained at its lowest level in over two years following eight cuts since June 2024.
Other rates were held steady: main refinancing at 2.15% and marginal lending at 2.40%.
ECB President Christine Lagarde said inflation is stabilizing near the 2% target in the medium term.
Flash estimates showed eurozone inflation at 2.1% in August, following 2% in June and July.
The EU-US trade deal brings clarity, though its full impact on the economy remains uncertain.
Political turmoil in France and weak global demand pose ongoing challenges to eurozone growth.
Oxford Economics predicts 0.8% growth in 2026 and inflation dipping below 2% next year.
Analysts expect a possible final ECB rate cut in December, but the bank may hold steady.
Lagarde will provide further updates on the bloc’s fiscal outlook at a press briefing later today.