European Central Bank leaves interest rates unchanged...Deposit rate at 2.00%

The European Central Bank (ECB) put the brakes on the rate-cutting cycle.

On the 24th (local time), the European Central Bank held a monetary policy meeting in Frankfurt, Germany and kept the deposit rate unchanged at 2.00%. The benchmark rate was also left unchanged at 2.15%.

The European Central Bank decides monetary policy with a focus on the deposit rate among policy rates. After shifting its monetary policy direction in June last year, the ECB had lowered policy rates for seven consecutive times from September last year until this June.

With this decision to keep rates unchanged, the gap between the ECB’s policy benchmark (the deposit rate) and the Fed’s benchmark rate (4.25–4.50%) remains at 2.25–2.50 percentage points. The difference with the Bank of Korea’s benchmark rate (2.50%) is 0.50 percentage points.