ECB Keeps Deposit Rate at 2% as Inflation Nears Target

The European Central Bank kept its deposit rate unchanged at 2%, aligning with analyst expectations.
The rate remains at its lowest in more than two years, following eight cuts since June 2024.
The ECB also left its refinancing and marginal lending rates steady at 2.15% and 2.40%.
President Christine Lagarde said inflation is stabilising around the 2% target in the medium term.
Eurozone inflation stood at 2.1% in August, after 2% in June and July.
The EU-US trade deal adds clarity, but the ECB is still assessing its full impact.
Lagarde noted political instability in France could weigh on investment and economic confidence.
Oxford Economics forecasts 0.8% eurozone growth in 2026, with inflation falling below 2% next year.
Analysts expect the ECB may cut rates again in December, though another pause remains possible.