ECB keeps the deposit interest rate at 2% and the refinancing rate at 2.15%, anticipating a stable medium-term inflation of 2%.

The European Central Bank (ECB) has decided to maintain the deposit rate at 2% and the refinancing rate at 2.15%, according to Reuters. The ECB's updated assessment suggests that inflation should stabilize at the medium-term target of 2%. The ECB emphasized that the economy remains 'resilient', highlighting low unemployment and solid balance sheets in the private sector, as well as increased public spending on defense and infrastructure.

However, the ECB warned that economic prospects are still uncertain, influenced by global trade policy and geopolitical tensions. Inflation in the eurozone fell to 1.7% last month, the lowest level since September 2024. The last rate cut by the ECB occurred on June 5 of last year, when borrowing costs were reduced by 25 basis points.