The European Central Bank left its deposit facility rate unchanged at 2.00% on 18 December 2025, marking the fourth consecutive meeting at which the Governing Council has opted to hold rather than adjust borrowing costs. The decision was announced at the ECB's final scheduled meeting of the year, alongside an upward revision to the bank's inflation projections.
Staff economists updated their forecasts ahead of the meeting, lifting the estimate for headline inflation in the euro area in 2026 to 1.9%, up from the 1.7% projected previously.
INFLATION REVISION
The ECB said inflation was revised up for 2026 mainly because staff now expect services inflation to decline more slowly.
The ECB's deposit rate peaked at 4.00%, a level reached in September 2023.
NEXT MEETING
The next scheduled monetary policy decision is due on 5 February 2026; the next Eurosystem staff projections are due in March 2026.
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