Benchmark deposit rate remains unchanged at 2% for 5th time in a row, at lowest level since November 2022.

The European Central Bank (ECB) on Thursday left its three key interest rates steady, meeting market forecasts.

The key deposit rate stands at 2%, its lowest level since November 2022.

The interest rates on the main refinancing operations and the marginal lending facility are at 2.15% and 2.40%, respectively.

The decision to keep rates unchanged marked the fifth consecutive hold. The bank last lowered rates at its June meeting, completing an eight-cut cycle that began when the ECB launched its easing phase in June 2024.

The bank said its updated assessment reconfirms that inflation should stabilize at the 2% target in the medium term.

“The economy remains resilient in a challenging global environment. Low unemployment, solid private sector balance sheets, the gradual rollout of public spending on defence and infrastructure and the supportive effects of the past interest rate cuts are underpinning growth,” the bank said.

But the ECB said the outlook is still uncertain due to ongoing global trade policy changes and geopolitical tensions.

The bank stressed that it is determined to ensure that inflation stabilizes at its 2% target in the medium term.

Eurozone’s annual inflation slowed to 1.7% in January, down from 1.9% in December, below the ECB’s medium-term target of 2%.