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Danske Bank

February 5, 2026

ECB Review

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The ECB kept the deposit rate at 2.00% as expected, with President Lagarde highlighting economic resilience over low inflation data. Danske Bank forecasts rates will remain on hold at this level through 2027.

Key Takeaways

  • 1.The ECB left key policy rates unchanged, with the deposit facility rate remaining at 2.00%.
  • 2.President Lagarde emphasized positive economic indicators like low unemployment while downplaying recent inflation undershooting and EUR strength.
  • 3.Danske Bank expects the ECB to maintain the 2.00% deposit rate throughout 2026 and 2027.

Table of Contents

  • Accentuate the positive
  • Disclosures
  • Analyst certification
  • Regulation
  • Conflicts of interest
  • Financial models and/or methodology used in this research report
  • Risk warning
  • Expected updates
  • Date of first publication
  • General disclaimer
  • Disclaimer related to distribution in the United States
  • Disclaimer related to distribution in the United Kingdom
  • Disclaimer related to distribution in the European Economic Area

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Authors

Rune Thyge JohansenKirstine Kundby-Nielsen

Securities

EURUSDECB Deposit Facility RateEUR Swap Curve

Themes

Growth vs. Inflation MandateMonetary Policy Inertia

Regions

EuropeGermanyUnited States