ECB Keeps Deposit Rate at 2% Amid Stable Inflation

The European Central Bank left its key deposit rate unchanged at 2%, as widely expected by analysts.
The decision came during the first policy meeting after the EU and US sealed a trade deal.
The deposit facility rate has stayed at 2% since June, its lowest level in more than two years.
It followed eight cuts since June 2024, lowering rates from a record 4%.
The main refinancing rate remained at 2.15%, while the marginal lending facility stayed at 2.40%.
ECB President Christine Lagarde said inflation is near the 2% target and stable in medium-term projections.
Prices rose 2.1% in August after steady 2% readings in June and July.
Despite stable inflation, the bloc faces challenges, including political turmoil in France.
The EU-US trade agreement has eased risks but its economic impact is still unclear.
Oxford Economics predicts eurozone growth will remain weak, with 0.8% expected in 2026.
Inflation could dip below 2% next year, and another rate cut is possible in December.