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

The European Central Bank held its key deposit rate at 2% during Thursday’s policy meeting.
Other rates remained unchanged: main refinancing at 2.15% and marginal lending at 2.40%.
The deposit rate has stayed at its lowest level in over two years since June 2024.
ECB has cut its key rate eight times since June 2024, down from a 4% peak.
President Christine Lagarde said inflation is stabilizing at 2% in the medium term, meeting the ECB’s target.
Flash estimates showed eurozone prices rose 2.1% in August, following 2% in June and July.
The bloc faces challenges, including political turmoil in France and weak global demand affecting investment.
The EU-US trade deal offers more clarity, but its full impact on the eurozone economy is still uncertain.
Oxford Economics predicts eurozone growth of 0.8% in 2026, with inflation falling below 2% next year.
Analysts say the ECB may cut rates once more in December, though it could also hold steady.