ECB Holds Key Deposit Rate at 2% Amid Stable Inflation

The European Central Bank kept its key deposit rate at 2% during Thursday’s monetary policy meeting.
This rate, the lowest in over two years, has remained steady since June after eight cuts from 4%.
Other main rates were also held: refinancing at 2.15% and marginal lending at 2.40%.
ECB President Christine Lagarde said inflation is stabilizing around the 2% medium-term target.
Flash estimates showed eurozone inflation at 2.1% in August, following 2% in June and July.
The EU-US trade agreement provides clarity, but its impact on the eurozone economy is still uncertain.
Political instability in France and weak global demand remain challenges for growth and investment.
Oxford Economics forecasts eurozone growth at 0.8% in 2026, with inflation dipping below 2% next year.
Analysts say the ECB may cut rates once more in December but could also keep them steady.
Lagarde will address the latest fiscal developments in a press briefing later today.