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
