The European Central Bank is expected to keep its deposit rate at 2.00% at least until the end of the year, according to a Reuters poll, even as inflation fell to a 16-month low.
Eurozone inflation eased to 1.7% in January, below the 2% target, but the economy remained resilient with growth of 0.3% in the final quarter of 2025.
A majority of economists expect the ECB to keep rates on hold until at least 2027. This would mark the longest period of no change since the era of negative rates ended.
The economy is forecast to grow 1.2% this year and 1.4% in 2027, while inflation is expected to average 1.8% this year before returning to 2.0% next year.
Despite external risks and possible disinflationary pressure from a stronger euro, analysts say the ECB is well-positioned to keep rates on hold for now.
