ECB maintains interest rates at 2% amid ongoing economic uncertainty

The European Central Bank has maintained its current monetary policy stance, holding three key interest rates steady during Thursday's meeting. The decision keeps the benchmark deposit facility rate at 2%, marking its third consecutive meeting without change and representing the lowest level for this rate since November 2022 within the eurozone financial system.

Current Rate Structure and Recent History

Under the current policy, the interest rates on main refinancing operations remain at 2.15%, while the marginal lending facility stands at 2.40%. This period of stability follows an extended easing cycle that included eight consecutive rate cuts, beginning when the ECB initiated its monetary policy loosening in June 2024. The most recent adjustment occurred in June, after which the bank has maintained its current position through subsequent meetings.

Economic Assessment and Inflation Outlook

The ECB's Governing Council noted that inflation continues to hover near its 2% medium-term target, with the overall assessment of price stability showing little change from previous evaluations. The institution reported that "the economy has continued to grow despite the challenging global environment," citing robust employment conditions, strong private sector financial health, and the cumulative impact of previous rate reductions as key factors supporting economic resilience across European Union member states.

Future Policy Direction and External Risks

Looking forward, the central bank emphasized its commitment to ensuring inflation stabilizes at the target level over the medium term. However, officials acknowledged significant uncertainty in the economic outlook, primarily driven by persistent global trade disputes and ongoing geopolitical tensions. The ECB reiterated it will maintain "a data-dependent and meeting-by-meeting approach" to future monetary policy decisions, with particular focus on incoming economic data, underlying inflation dynamics, and the effectiveness of policy transmission mechanisms. This cautious stance follows recent eurozone inflation data showing a slight increase to 2.2% in September, marginally above the bank's target.