ECB Maintains Interest Rates

(MENAFN) The European Central Bank (ECB) announced on Thursday that it would keep its three primary interest rates unchanged, aligning with market expectations.

The key deposit rate remains at 2%, marking its lowest point since November 2022. Meanwhile, the rates for the main refinancing operations and the marginal lending facility are maintained at 2.15% and 2.40%, respectively.

This decision to leave rates steady represents the fifth consecutive pause. The bank last reduced rates during its June meeting, concluding an eight-step rate-cutting cycle that began when the ECB initiated its easing phase in June 2024.

According to the bank, its most recent evaluation confirms that inflation is expected to stabilize at the 2% target over the medium term.

"The economy remains resilient in a challenging global environment. Low unemployment, solid private sector balance sheets, the gradual rollout of public spending on defence and infrastructure and the supportive effects of the past interest rate cuts are underpinning growth," the bank stated.

However, the ECB cautioned that the economic outlook remains uncertain due to persistent shifts in global trade policies and ongoing geopolitical tensions.

The bank emphasized its commitment to ensuring that inflation stabilizes at its 2% target in the medium term.

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