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ECB Holds Rates for Fifth Straight Meeting as Inflation Stays Below Target

Subdued inflation keeps the ECB in wait-and-see mode.

Overview

  • The European Central Bank left the deposit facility at 2.00% and the main lending rate at 2.15% after its Feb. 5 meeting.
  • January euro-area consumer prices rose 1.7% year over year, below the ECB’s 2% medium-term aim.
  • Eurostat reported fourth-quarter 2025 real GDP growth of 0.3% quarter on quarter, indicating a modest recovery.
  • Financial markets had largely anticipated the hold, and traders widely expect policy to stay unchanged for a while.
  • President Christine Lagarde said the economy and inflation are progressing broadly as expected and noted the euro’s exchange rate remains within the ECB’s standards.