The European Central Bank (ECB) has decided to leave its three key interest rates unchanged, signalling continued confidence that inflation will stabilise at its 2 per cent target over the medium term. The deposit facility rate remains at 2.00 per cent, while the main refinancing operations rate stays at 2.15 per cent and the marginal lending facility at 2.40 per cent.

According to updated Eurosystem staff projections, headline inflation is expected to average 2.1 per cent in 2025, easing to 1.9 per cent in 2026 and 1.8 per cent in 2027, before returning to 2.0 per cent in 2028. Inflation excluding energy and food is forecast at 2.4 per cent in 2025, gradually declining to 2.0 per cent by 2028. Inflation for 2026 has been revised upward, mainly due to expectations that services inflation will fall more slowly than previously anticipated, the Governing Council of the ECB said in a press release.

European Central Bank has kept its key interest rates unchanged, maintaining confidence that inflation will stabilise at the 2 per cent target.
Updated projections show inflation easing gradually over the coming years, with a slight upward revision for 2026 due to persistent services prices.
Economic growth forecasts have been revised higher, supported by stronger domestic demand.

The ECB also revised its economic growth outlook higher compared with its September projections. Growth is now expected to reach 1.4 per cent in 2025, 1.2 per cent in 2026 and 1.4 per cent in 2027, with expansion projected to remain at 1.4 per cent in 2028. The improvement is driven largely by stronger domestic demand across the euro area.

The Council reiterated its commitment to ensuring that inflation stabilises sustainably at the 2 per cent target. It emphasised that future monetary policy decisions will remain data-dependent and assessed on a meeting-by-meeting basis, without pre-committing to any specific interest rate path.

Fibre2Fashion News Desk (KD)

Select Country Afghanistan Albania Algeria Andorra Angola Argentina Armenia Aruba Australia Austria Azarbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bhutan Bolivia Bosnia&Herzegovina Botswana Brazil Brunei Bulgaria Burkino Faso Burundi Cambodia Cameroon Canada Canary Islands Chad Chile China Colombia Congo Costa Rica Cote d Ivoire Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominican Republic Ecuador Egypt El Salvador Estonia Ethiopia Fiji Finland France French Polynesia Gabon Gambia Georgia Germany Ghana Greece Grenada Guatemala Guinea Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Ivory Coast Jamaica Japan Jordan Kazakhstan Kenya Korea Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Mauritania Mauritius Mexico Micronesia Moldova Monaco Mongolia Morocco Mozambique Myanmar Namibia Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Sahara Samoa Saudi Arabia Scotland Senegal Seychelles Sierra Leone Singapore Slovakia Slovenia Somalia South Africa Spain Sri Lanka Sudan Surinam Sweden Switzerland Syria Taiwan Tajikstan Tanzania Thailand Togo Trinidad &Tobago Tunisia Turkey Turkmenistan Uganda Ukraine UAE UK USA Uruguay Uzbekistan Vanuatu Vatican city Venezuela Vietnam West Indies Yemen Yugoslavia Zambia Zimbabwe

Select State Andaman and Nicobar Islands Andhra Pradesh Assam Chandigarh Dadra and Nagar Haveli Delhi Gujarat Haryana Himachal Pradesh Jammu and Kashmir Kerala Lakshadweep Maharashtra Manipur Meghalaya Karnataka Nagaland Orissa Pondicherry Punjab Rajasthan Tamil Nadu Telangana Tripura West Bengal Sikkim Arunachal Pradesh Mizoram Daman and Diu Goa Bihar Madhya Pradesh Uttar Pradesh Chhattisgarh Jharkhand Uttarakhand