ECB Keeps Deposit Rate at 2% as Inflation Nears Target

The European Central Bank left its key deposit rate unchanged at 2% during Thursday’s policy meeting.
The deposit facility rate, the bank’s main policy tool, has held steady since June after multiple rate cuts.
The ECB has lowered its key rate eight times since June 2024, down from a record 4%.
Other rates also remain unchanged, with refinancing at 2.15% and the lending facility at 2.40%.
President Christine Lagarde said inflation is close to the 2% target and projected to stabilize in the medium term.
Recent data showed prices rose 2.1% in August, following 2% in June and July.
Analysts see eurozone growth slowing, with Oxford Economics predicting 0.8% in 2026 and inflation below 2% in 2025.
They expect one more ECB rate cut in December, though the bank may hold steady instead.
Lagarde noted political turmoil in France and global demand weakness continue to weigh on the eurozone outlook.
The EU-US trade deal reduced risks and could improve business confidence, but its real impact is still unclear.