Overview
- The Governing Council left the key deposit rate at 2% for the fourth consecutive meeting in a unanimous decision.
- The ECB said inflation is expected to stabilize around its 2% target and pointed to a resilient eurozone economy.
- Updated macroeconomic projections now extend through 2028 and factor in the one-year delay of the ETS2 carbon pricing scheme.
- External conditions feature a 25-basis-point Fed cut to a 3.75%–4% range, with analysts warning a stronger euro could pressure exports and growth.
- Policy views diverge within the ECB, with board member Isabel Schnabel saying she shares market expectations that the next move could be a hike.