ECB keeps deposit rate at 2.5% — Der Spiegel

The Governing Council of the European Central Bank in Frankfurt decided not to raise key interest rates for now. The deposit rate, important for banks and depositors, remained at 2.5%, Der Spiegel reports.

Inflationary pressure

In September, the ECB raised its key interest rate by 0.25 percentage points for the second time since the beginning of the year. According to the publication, rising oil and energy prices amid the war in Iran have intensified inflation. The European regulator's main task remains keeping inflation within the established limits.

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Financial markets expect another rate increase in December if inflation, fueled by energy prices, does not begin to ease. Higher rates make loans more expensive for consumers and companies, which may reduce demand and curb inflation. At the same time, rate increases place an additional burden on the weak economy.

Lagarde's resignation

A few hours before the rate decision, ECB President Christine Lagarde announced that she would leave her post on February 7, 2027. Her term at the head of the central bank had been due to end in October 2027. There had previously been prolonged speculation about her early departure and possible move to the World Economic Forum.