The ECB kept its deposit rate unchanged at 2.00%, in line with expectations, and signaled no change in its cautious, data-dependent approach. Policymakers reaffirmed that inflation remains close to the 2% medium-term target, with the Governing Council’s assessment of the outlook “broadly unchanged.”
In its statement, the ECB noted that the Eurozone economy continues to grow despite a difficult global backdrop. It cited the robust labor market, solid private sector balance sheets, and the supportive effects of past rate cuts as key “sources of resilience”. However, the Bank acknowledged that the outlook remains uncertain, highlighting persistent global trade disputes and geopolitical risks as ongoing headwinds.
The Governing Council reiterated that future policy decisions will be made on a meeting-by-meeting basis and guided strictly by incoming data. ECB emphasized that it is “not pre-committing to a particular rate path.”
