ECB leaves rates unchanged at 2% for the fourth consecutive time

Inflation close to target and stronger growth: Frankfurt confirms its cautious stance and defers decisions to upcoming data.

The European Central Bank kept the deposit rate unchanged at 2% for the fourth consecutive meeting, in line with market expectations. The institution reiterated its “meeting-by-meeting” approach, without providing guidance on future moves. New projections point to a more resilient economy and inflation returning to 2% over the medium term, following a temporary period below target.

ECB officials believe that the current inflation undershoot does not require immediate action, while markets are beginning to price in a possible rate hike starting in 2026. President Christine Lagarde will present her assessment at a press conference at 2:45 p.m. in Frankfurt.

Andrea Pelucchi