ECB Holds Deposit Rate at 2% Amid Stable Inflation

The European Central Bank left its key deposit rate unchanged at 2%, as expected by analysts.
The rate, last cut in June 2024, remains at its lowest level in more than two years.
The ECB also kept refinancing and lending facility rates steady at 2.15% and 2.40%.
President Christine Lagarde said inflation projections show stability near the 2% target in the medium term.
Eurozone prices rose 2.1% in August, following 2% in June and July.
Despite stable inflation, the bloc faces political turmoil in France and weak global demand.
The EU-US trade agreement eased risks, but growth prospects remain modest.
Oxford Economics forecasts 0.8% eurozone growth in 2026 and expects inflation to dip below 2% next year.
Experts see a possible further ECB rate cut in December, though the bank may hold steady.