"European Central Bank" Keeps Interest Rates Unchanged for the Fifth Consecutive Time

SadaNews Economy: The European Central Bank kept interest rates unchanged today, Thursday, for the fifth consecutive time as expected, ignoring the drop in inflation while continuing to warn of geopolitical instability.

The bank left the deposit interest rate at 2%, a level it has maintained since June, and reasserted its expectations of stable inflation at the targeted rate of 2% as well.

The central bank covering the Eurozone stated in a release, "Updated assessments (of the European Central Bank) confirm that inflation will stabilize at the target rate of 2% in the medium term," according to Reuters.

The European Central Bank said the economy "has maintained its strength in a challenging global environment," pointing to a decrease in the unemployment rate, the solid balance sheets of the private sector, and the gradual implementation of public spending programs on defense and infrastructure.

However, it renewed its long-standing warning regarding uncertainty surrounding the forecasts "due to ongoing fog in global trade policy and geopolitical tensions."

The pace of price increases in the 21 countries using the euro fell to 1.7% last month, the lowest level since September 2024, and inflation is expected to remain slightly below the bank's target for at least a year.