The European Central Bank kept interest rates unchanged at 2% today Thursday. The governing council proceeded with this decision in today’s meeting as macroeconomic data shows no significant changes. As with its last decision, the central bank’s governing council left interest rates stable in order to further assess the impact of previous moves in the eurozone, while the growth forecast remained cautiously positive. As usual, ECB President Christine Lagarde will analyze the reasoning behind the decision in the customary press conference that follows.
Interest rates: The European Central Bank’s assessment
The basic framework influencing ECB officials’ decision includes the latest inflation data, which has declined to levels below the 2% target in January 2026 -with the general index standing at 1.7%- signaling lower price pressures but also a “mild” economic slowdown in the region.
Meanwhile, European banks face stricter lending conditions, highlighting the caution of financial institutions in an environment that remains uncertain for new investments and lending.
