MNI BRIEF: ECB Cuts Rates As 2026 Inflation Outlook Slashed

The European Central Bank cut its three key interest rates on Thursday, as projections for inflation in 2026 were slashed by eurosystem staff.

The key deposit rate was cut by 25 bps to 2.0%, with the refinancing rate and the marginal lending rate also cut to 2.1.5% and 2.4% respectively. (See MNI SOURCES: Risks Tilt To Downside As ECB Mulls Path Below 2% )

Headline inflation was projected at 2.0% in 2025, before slipping to 1.6% in 2026 and then rising back to target at 2% in 2027. (See MNI SOURCES: ECB Set To Lower 2026 Inflation Projection )