🏛️ ECB holds rates at 2% amid softening inflation

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The European Central Bank (ECB) has decided to maintain its deposit rate at 2% for the fifth consecutive meeting, as Eurozone inflation fell to 1.7% in January, its lowest since September 2024. This decision reflects a cautious approach amid ongoing global uncertainties. Banks are tightening credit access for businesses and households, with 7% reporting stricter lending standards. The ECB's focus remains on monitoring economic indicators, particularly the euro's strength against the dollar, which could influence future policy decisions.

Key points

• The ECB maintains the deposit rate at 2% for the fifth consecutive meeting.
• Eurozone inflation fell to 1.7% in January, its lowest since September 2024.
• Banks are tightening credit access for businesses and households amid economic uncertainty.
• The euro's strength against the dollar may influence future ECB policy decisions.

Links

• Reuters: Morning Bid: Euro zone faces inflation hurdle before ECB
• Reuters: Ultra-low bond spread unity still out of reach for euro area
• 20minutos: El BCE mantendrá los tipos en el 2%: la banca empieza a restringir el acceso al crédito a empresas y familias
• Il sole 24 ORE: Bce, ecco perché terrà i tassi fermi anche a febbraio
• Frankfurter Allgemeine Zeitung: EZB und Inflation: Wie sich die Preise im Euroraum entwickeln
• Reuters: Euro zone inflation dips in January as soft patch begins
• Handelsblatt: Inflation: Teuerungsrate sinkt zu Jahresbeginn weiter unter EZB-Ziel
• Handelsblatt: Dax aktuell: Dax notiert unverändert - Gold und Zalando-Aktie erholen sich
• Handelsblatt: Inflation: Preise im Euro-Raum steigen im Januar um 1,7 Prozent
• BFMTV: INFOGRAPHIES. L'inflation tombe à 1,7% en zone euro, son plus bas depuis 16 mois: la France se distingue avec de loin le taux le plus bas d'Europe (à 0,4%)
• Handelsblatt: EZB: Rückläufige Inflation, stärkerer Euro - wann folgt eine Zinssenkung?
• Tagesschau (ARD): Inflation in der Eurozone fällt auf tiefsten Stand seit 2021
• La Stampa: Bce pronta a confermare i tassi al 2%, ma l'euro torna al centro del gioco
• RAI News: Frena l'inflazione nell'eurozona. A Milano corrono Mps e Mediobanca
• Les Echos: Gros coup de frein de l'inflation en zone euro
• Handelsblatt: Dax aktuell: Dax notiert unverändert - Telekom steigt
• France 24: La inflación en la zona euro se desacelera a 1,7% en enero
• Frankfurter Allgemeine Zeitung: EZB belässt Leitzinsen: Welche Folgen hat das für Sparer?

Facts

• ECB holds deposit rate at 2% as of February 4, 2026.
• Eurozone inflation dropped to 1.7% in January 2026.
• 7% of banks reported tightening lending standards for businesses.
• Underlying inflation eased to 2.2% in January 2026.

Quotes

• With underlying inflation still a little too high for comfort, we believe the most likely outcome is that the ECB will keep rates unchanged — Diego Iscaro
• Surveys on household and corporate access to credit show a recent resurgence of strain — Romain Aumond

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