ECB Holds Key Deposit Rate at 2% Amid Stable Inflation

The European Central Bank kept its benchmark deposit rate unchanged at 2% during Thursday’s policy meeting.
The rate has stayed at its lowest level in over two years since June, following eight cuts from 4%.
Other main rates were also held steady: 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 prices rose 2.1% in August, after 2% readings in June and July.
The EU-US trade agreement brings clarity, but its economic impact is yet to be fully assessed.
Political uncertainty in France and weak global demand continue to challenge eurozone growth prospects.
Oxford Economics predicts 0.8% growth in 2026 and expects inflation to fall below 2% next year.
Analysts say the ECB may cut rates once more in December, though holding steady is possible.
Lagarde will provide further updates on fiscal developments in the bloc at her press briefing.