ECB, rates unchanged at 2%. Lagarde: 'Reform check list to European leaders'
In Frankfurt the decision of the Governing Council of the European Central Bank
Firm rates, as expected. The European Central Bank left the deposit rate unchanged at 2%, the main refinancing rate at 2.15%, and the marginal lending rate at 2.40%. These are the levels reached with the last cut in June 2025, after a manoeuvre to reduce the cost of official very short-term credit by a total of two percentage points in one year. The decision was unanimous.
"Good economic resilience"
The communiqué issued at the end of the meeting explains that the "updated assessment" of the macroeconomic situation "again confirms that inflation is expected to stabilise at the 2% target in the medium term". There is therefore no reason to change the monetary policy approach.
"The economy," the note continues, "continues to show good resilience in a difficult global environment. Low unemployment, strong private sector balance sheets, the gradual implementation of public spending on defence and infrastructure, together with the favourable effects of past interest rate cuts, are supporting growth. At the same time, the outlook is still uncertain, mainly due to uncertain trade policies and ongoing geopolitical tensions worldwide'.
A checklist for competitiveness
The ECB emphasised the resilience of economic activity: 'Rising labour incomes', even in a market where demand is cooling, together with 'a lower household savings rate should support consumption', explained ECB President Christine Lagarde, while government spending on defence and infrastructure should further help domestic demand.
The challenge posed by tariffs and the rise of the euro against the dollar, however," he continued, "underlines the need to strengthen the euro area. In preparation for the European meeting on 12 February on reforms for competitiveness, the ECB has therefore prepared a checklist of important measures to achieve this goal: capital market union, the digital euro, promotion of innovation, 'open' strategic autonomy, simplification of legislation and strengthening of the institutional framework are the central points.
