ECB holds interest rates for fourth consecutive meeting

European Central Bank’s (ECB) decision to pause interest rate cuts on eurozone economy resilience and stable inflation

The European Central Bank (ECB) kept interest rates unchanged at its last meeting of the year, as expected, citing the resilience of the eurozone economy in the face of global trade shocks and stable inflation.

At its meeting on Thursday, the bank left its key deposit rate unchanged at 2%, in line with expectations.

The ECB now forecasts GDP growth of 1.4% in 2025, up from its previous estimate of 1.2%, and raised its growth forecasts for the next two years to 1.2% and 1.4%, respectively.

As for inflation, the bank expects it to reach 2.1% this year, then slow to 1.9% in 2026 and 1.8% in 2027.