ECB Holds Deposit Rate at 2% as Inflation Nears Target

The European Central Bank left its key deposit rate unchanged at 2% during its latest policy meeting.
The rate has remained at its lowest level in over two years since June after eight cuts from a 4% peak.
Other main rates were also held steady: refinancing at 2.15% and marginal lending at 2.40%.
President Christine Lagarde said inflation is stabilizing at 2% in the medium term, matching the ECB’s target.
Flash data showed eurozone inflation at 2.1% in August, following 2% in June and July.
The ECB decision came after the EU and US reached a trade deal, which could support business clarity.
Lagarde noted the bloc still faces challenges, including political turmoil in France and weak global demand.
Oxford Economics forecasts eurozone growth at 0.8% in 2026, with inflation slipping below 2% next year.
Analysts expect one final rate cut in December, though the ECB could hold steady.
Lagarde will address the bloc’s fiscal outlook in a press briefing later today.