ECB Keeps Deposit Rate at 2% as Economy Shows Resilience

The European Central Bank left its key deposit rate unchanged at 2% during Thursday’s policy meeting.
Analysts widely expected the decision, as eurozone inflation remains near the ECB’s 2% target.
The deposit rate, the interest banks earn on overnight deposits, has stayed at its lowest level in two years.
Since June 2024, the ECB has cut rates eight times, down from a record high of 4%.
Other key rates were also kept steady: 2.15% for refinancing operations and 2.40% for the lending facility.
ECB President Christine Lagarde said inflation is stabilising at target in the medium term, calling the outlook “a good place.”
Eurozone inflation reached 2.1% in August after 2% readings in June and July.
Challenges persist, including political turmoil in France and weak global demand affecting growth and investment.
The EU-US trade agreement has reduced risks and may improve activity next year, analysts at Oxford Economics said.
They forecast eurozone growth of 0.8% in 2026, with inflation dipping below 2% next year.
Oxford Economics expects one more ECB rate cut in December, though the bank could hold steady.
Lagarde will address fiscal developments in her press briefing this afternoon.