The European Central Bank left its deposit facility rate unchanged at 2% for a second straight meeting in September, maintaining a cautious “wait-and-see” stance amid steady inflation, a resilient economy, record-low unemployment, and ongoing trade policy uncertainty. From June 2024 to June 2025, the ECB lowered borrowing costs by a total of 200 basis points, pausing in July. Markets now expect rates to remain on hold through year-end, with a possible return to tightening in late 2026.