ECB keeps rates unchanged, targets 2% inflation

February 05, 2026 (MLN): The European Central Bank’s Governing Council decided to keep its three key interest rates unchanged, leaving the deposit facility rate at 2.00%, the main refinancing operations rate at 2.15% and the marginal lending facility rate at 2.40%.

The ECB said inflation is expected to stabilise at its 2% target over the medium term, while the euro area economy remains resilient despite a challenging global environment, according to a press release issued by the European Central Bank.

Low unemployment, strong private sector balance sheets, the gradual rollout of public spending on defence and infrastructure, and the continued supportive effects of earlier interest rate cuts are helping to underpin growth.

At the same time, the Governing Council warned that the outlook remains uncertain, particularly due to ongoing global trade policy uncertainty and geopolitical tensions.

Reaffirming its commitment to price stability, the ECB said it will continue to follow a data-dependent, meeting-by-meeting approach when setting monetary policy. 

Interest rate decisions will be based on its assessment of the inflation outlook and related risks, incoming economic and financial data, underlying inflation dynamics, and the strength of monetary policy transmission. 

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