The ECB kept key rates unchanged for the fourth consecutive time

On December 18, the European Central Bank (ECB) kept all three key interest rates unchanged for the fourth consecutive time. This is stated in the regulator’s report.

The deposit rate remained at 2% per annum, the main refinancing operations rate at 2.15%, and the marginal lending facility rate at 2.4%.

The regulator’s updated assessment confirms that inflation should stabilize at the target level of 2% in the medium term.

New forecasts by ECB experts show that the eurozone economy will grow by 1.4% in 2025, 1.2% in 2026, and 1.4% in 2027. The previous autumn forecast was 1.2%, 1%, and 1.3%, respectively.

Headline inflation will rise by 2.1% this year, as previously expected. At the same time, the forecast for 2026 has been revised to 1.9% from 1.7%. In 2027, the regulator forecasts inflation at 1.8%.

Consumer prices excluding energy and food (core inflation) will rise by 2.4% this year, 2.2% next year, and 1.9% (1.8%) in 2027.

It should be recalled that inflation in the eurozone accelerated to 2.2% year-on-year in November 2025, up from 2.1% in October, according to Eurostat’s preliminary estimate. Thus, the indicator slightly exceeded the ECB’s target of 2% and remains close to it.

As GMK Center reported earlier, according to preliminary data, in the third quarter of 2025, EU GDP grew by 0.3% compared to the previous quarter, while in the eurozone it grew by 0.2% q/q. In annual terms, the EU economy grew by 1.5%, and the eurozone economy grew by 1.3%. Sweden, Portugal, and the Czech Republic led the recovery.