Today, the European Central Bank (ECB) decided to leave its key interest rate unchanged. The deposit rate thus remains at 2.00%. The main refinancing rate is 2.15%, and the marginal lending rate is 2.40%.
Florian Heider, Scientific Director of the Leibniz Institute for Financial Research SAFE, comments:
"The ECB has continued its rate pause, as widely expected. Given inflation fluctuating around the two-percent target and the subdued economic momentum until now, today’s decision was not unexpected.
Looking back on the year, it can be said that the monetary policy strategy was essentially successful. In the first half of the year, inflation has noticeably fallen and remained stable since then. In a challenging geopolitical environment, the ECB has acted cautiously and data-dependently.
The labor market is robust overall, but service inflation remains stubborn. In 2026, the global economy will continue to face structural challenges, ranging from digitalization and the use of artificial intelligence to expansionary fiscal policy and high government debt. The current calm in monetary policy gives the ECB the flexibility to react quickly to new data."
