European Central Bank Keeps Interest Rates Steady
(MENAFN) On Thursday, the European Central Bank (ECB) maintained its three primary interest rates unchanged, aligning with market predictions.
The key deposit rate currently remains at 2%, marking its lowest point since November 2022.
Meanwhile, the interest rates for the main refinancing operations and the marginal lending facility are set at 2.15% and 2.40%, respectively.
This decision to keep rates steady is the second consecutive one.
The institution last reduced rates during its June meeting, concluding an eight-step rate cut sequence that began when the ECB started its easing phase in June 2024.
The bank indicated that inflation is presently close to the Governing Council’s medium-term objective of 2%.
According to the bank’s statement, "The new ECB staff projections present a picture of inflation similar to that projected in June. They see headline inflation averaging 2.1% in 2025, 1.7% in 2026 and 1.9% in 2027."
The economic growth for the eurozone is now anticipated to be 1.2% in 2025, an upward revision from the 0.9% forecast in June.
The growth outlook for 2026 has been slightly lowered to 1.0%, while the 2027 estimate remains steady at 1.3%, as per the central bank’s projections.
The ECB emphasized its commitment to ensuring that inflation stabilizes around its 2% target over the medium term.
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