The European Central Bank (ECB) kept its deposit rate unchanged at 2.00%, aligning with market expectations.
While inflation currently hovers near 2%, updated projections show headline inflation easing slightly to 1.9% by 2027, down from the previous 2% forecast.
Core inflation is seen at 1.8%, fueling speculation of potential rate cuts ahead.
Inflation forecasts for 2025 and 2026 were marginally revised: 2025 at 2.1% (up from 2%) and 2026 at 1.7% (up from 1.6%).
The growth outlook remains broadly in line with June’s assessment.
Following the announcement, the euro slipped 0.3% to $1.1664, extending earlier losses.
(Edited by : Ajay Vaishnav)
