ECB holds interest rate at 2%

European Central Bank (ECB) headquarters

The European Central Bank (ECB) kept interest rates unchanged at its policy meeting on Thursday, following seven consecutive cuts, as inflation returned to its 2% target.

In its policy statement, the ECB said the Governing Council decided to maintain the main refinancing operations rate, the key interest rate, at 2%.

It also kept the rate on the marginal lending facility at 2.4% and the deposit facility at 2.15%.

The ECB noted that recent economic data largely align with its previous inflation outlook, pointing to continued easing in underlying price pressures and a slowdown in wage growth.

The statement added that the eurozone economy remains relatively resilient despite a challenging global environment, partly reflecting the impact of earlier rate cuts.