Monday, 17 August 2026Europe · Analysis
Independent · Brussels & Berlin
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Eurozone economist, Schroders
The European Central Bank kept its key deposit rate unchanged for a third consecutive meeting on Thursday, judging that a modest recovery and sticky services inflation warrant patience despite price growth accelerating to 2.2% in September.
The European Central Bank left its deposit facility rate unchanged for a second meeting, signalling patience while new projections nudge up 2025 growth but trim 2026 expectations.
Flash estimate beats expectations as services inflation eases to lowest since March 2022; analysts see no rate move at next week's meeting
Eighth consecutive quarter-point reduction brings borrowing costs below half the level in Britain and the United States, with inflation now under target and growth forecasts weakening.
The quarter-point move brings the deposit facility rate down from its 4% peak, but policymakers signal caution on further easing amid trade uncertainty and sticky core inflation.
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