(MENAFN) The European Central Bank (ECB) on Thursday opted to keep its three main interest rates unchanged, aligning with market forecasts.

The deposit rate remains at 2%, its lowest since November 2022. Meanwhile, rates on the main refinancing operations and the marginal lending facility hold steady at 2.15% and 2.40%, respectively.

This marks the ECB’s second consecutive pause following an eight-rate-cut streak that began with the easing cycle launch in June 2024.

Inflation currently hovers close to 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 ECB stated.

Economic growth forecasts for the euro area were also updated: the bank now anticipates 1.2% growth in 2025, up from 0.9% projected in June. Growth estimates for 2026 dropped slightly to 1.0%, while 2027 remains steady at 1.3%.

The ECB reaffirmed its commitment to stabilizing inflation at the 2% medium-term goal.

"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 statement said.

The decision arrives after eurozone annual inflation nudged up to 2.1% in August from 2.0% in July, slightly exceeding the ECB’s target.

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