The European Central Bank (ECB) kept its deposit rate unchanged at 2%, as expected by the market.

The ECB has cut its key interest rate eight times in the past 12 months, starting in June 2024.

Inflation is close to the ECB's 2% target.

➤ Forecasts are for 2.1% in 2025, 1.7% in 2026 and 1.9% in 2027.

➤ Core inflation (excluding food and energy costs) is expected to remain at 2.4% in 2024.

Economic growth in the euro area remains weak.
➤ The economy grew just 0.1% in the second quarter, compared to 0.6% in the first quarter. ➤ Growth is now forecast at 1.2% in 2025 (up from 0.9%) and 1% in 2026.