ECB holds interest rates at 2% after eurozone inflation drops in January

ECB holds interest rates at 2% after eurozone inflation drops in January

Source: EODHD - https://uk.finance.yahoo.com/news/ecb-holds-interest-rates-eurozone-inflation-january-131646998.html
Published: Feb 05, 2026 8:16 AM

The European Central Bank (ECB) has left interest rates on hold at 2%, as widely expected, after inflation in the eurozone came in at 1.7% in the year to January. This means rates across the eurozone have been paused for a fifth consecutive time, since June last year, since inflation slipped back to the bloc’s target. Economists still expect no change in the coming months from the ECB, which has predicted that inflation will average 1.9% in 2026 after hovering at 2.1% last year. However, Andrzej Szczepaniak, an analyst at Nomura, said he expects its next move to be an increase rather than a cut, although he expects rates to “remain on hold for the foreseeable future”. He forecasts unemployme...

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