Euro Area Interest Rate

The European Central Bank left interest rates unchanged for a third consecutive meeting in October, signaling confidence in a resilient eurozone economy and easing inflation pressures. The main refinancing rate remained at 2.15%, while the deposit facility rate stayed at 2.0%. The ECB noted that inflation remains close to its 2% medium-term target, and the Governing Council’s assessment of the inflation outlook is broadly unchanged. The economy has continued to expand despite a challenging global environment, supported by a robust labor market, solid private-sector balance sheets, and the impact of previous rate cuts, which together underpin the region’s resilience. However, the economic outlook remains uncertain, particularly due to persistent global trade disputes and geopolitical tensions. Policymakers also said they will continue to follow a data-dependent, meeting-by-meeting approach in setting monetary policy.