Overview
- The Governing Council left the deposit rate at 2.0% with the main refinancing rate at 2.15% and the marginal lending rate at 2.40%, extending a pause in place since June 2025.
- Eurostat’s flash estimate puts January inflation at 1.7% year on year, led by a 4.1% drop in energy prices, while core inflation eased to about 2.2%.
- Inflation is diverging across the bloc, with France at about 0.4% and Germany near 2.1% on the harmonized measure.
- Christine Lagarde reaffirmed a meeting‑by‑meeting stance as policymakers weigh services and wage risks against a stronger euro that recently briefly exceeded $1.20.
- Past tightening continues to cool new housing lending in Germany, even as fixed‑term savings yields have inched up, with ten‑year averages around 2.49% and some two‑year offers near 2.6%.