Euro Holds Steady as ECB Keeps Deposit Facility at 2% and Unchanged Refinancing and Lending Rates for Fourth Straight Meeting

The European Central Bank kept its policy path unchanged in the December review, with the deposit facility rate held at 2.0%. The main refinancing rate remains at 2.15% and the marginal lending rate at 2.40%, collectively aligning with market expectations and signaling a patient policy stance.

Markets responded with muted signals as traders priced in stability ahead of fresh inflation data; the decision underscores a data-dependent approach to monetary policy, with the euro trading in a narrow range as investors await clearer guidance on the path to normalization.

Looking forward, analysts note that any future adjustments will hinge on inflation persistence and growth momentum. The ECB’s cautious tone suggests the next move will be data-driven rather than calendar-based, shaping sentiment across fixed income and foreign exchange markets and informing risk management for European assets.