
403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
ECB Holds Key Rates Steady Amid Inflation Targets
(MENAFN) The European Central Bank (ECB) announced on Thursday that it is keeping its three main interest rates unchanged, aligning with market expectations.
The key deposit rate now stands at 2%, marking its lowest point since November 2022. Meanwhile, the rates for the main refinancing operations and the marginal lending facility are set at 2.15% and 2.40%, respectively.
This marks the second consecutive decision to maintain interest rates, following a reduction at the June meeting.
That move concluded an eight-rate-cut sequence that began when the ECB initiated its easing cycle in June 2024.
The bank noted that inflation currently hovers around the Governing Council’s medium-term target of 2%.
"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 central bank said in a statement.
Economic growth in the euro area is expected to reach 1.2% in 2025, an upward revision from the 0.9% forecasted in June. The 2026 growth estimate has been slightly reduced to 1.0%, while the projection for 2027 remains at 1.3%, according to the ECB.
The bank emphasized its commitment to maintaining inflation at the 2% target over the medium term.
"It will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. In particular, the Governing Council’s interest rate decisions will be based on its assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission," the EU monetary institution added.
The key deposit rate now stands at 2%, marking its lowest point since November 2022. Meanwhile, the rates for the main refinancing operations and the marginal lending facility are set at 2.15% and 2.40%, respectively.
This marks the second consecutive decision to maintain interest rates, following a reduction at the June meeting.
That move concluded an eight-rate-cut sequence that began when the ECB initiated its easing cycle in June 2024.
The bank noted that inflation currently hovers around the Governing Council’s medium-term target of 2%.
"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 central bank said in a statement.
Economic growth in the euro area is expected to reach 1.2% in 2025, an upward revision from the 0.9% forecasted in June. The 2026 growth estimate has been slightly reduced to 1.0%, while the projection for 2027 remains at 1.3%, according to the ECB.
The bank emphasized its commitment to maintaining inflation at the 2% target over the medium term.
"It will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. In particular, the Governing Council’s interest rate decisions will be based on its assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission," the EU monetary institution added.

Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research

- 0G Labs Launches Aristotle Mainnet With Largest Day-One Ecosystem For Decentralized AI
- Origin Summit Announces Wave 3: Animation Powerhouse Maggie Kang To Join Programming Lineup
- WBTC Strengthens Its Role As Multichain Standard For Bitcoin In Defi
- Stonehaven Circle Marks 13Th Anniversary With Hadrian Colwyn Leading Calvio Ailegacyx Innovation
- Solstice Announces Strategic Collaboration With Chainlink And Leading Custody And Venture Firms To Enhance Ecosystem Ahead Of USX Stablecoin Launch
- Easystaff Data Reveals 6.8× Growth In Payroll Use Of Stablecoins
Comments
No comment