European Central Bank Interest Rates Left Unchanged
September 11, 2025
The European Central Bank‘s deposit rate was kept at 2.0% today as widely anticipated. This was the second review without a cut following eight straight cuts totaling 200 basis points from June 2024 and June 2025. Today’s statement says that “Inflation is currently at around the 2% medium-term target and the Governing Council’s assessment of the inflation outlook is broadly unchanged.” Total inflation over that last seven reported months through August have ranged from 1.9% to 2.3%, including 2.1% in August. Updated forecasts, which the ECB does on a quarterly basis, project CPI inflation of 1.7% next year and 1.9% in 2027. Projected core inflation also stays under 2.0% in each of those years. The statement, like others, repeats that future policy is decided meeting to meeting and not on a pre-determined schedule.
Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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