ECB Holds Rates at 2.15%: Navigating the Eurozone's Low-Inflation Plateau

Market snapshot: The European Central Bank (ECB) maintained its key interest rates for the fifth consecutive meeting in February 2026. The main refinancing rate remains at 2.15%, while the deposit facility and marginal lending facility were held at 2.00% and 2.40% respectively. This decision aligns with market expectations as the Eurozone successfully manages a 'soft landing' with inflation currently dipping below the 2% target.

Summary: The ECB kept interest rates unchanged at 2.15%, citing stable economic conditions despite Eurozone inflation cooling to 1.7% in January.

Key Takeaways

• Interest rates held steady at 2.15% for the fifth consecutive meeting.
• January 2026 inflation dropped to 1.7%, falling below the ECB's 2.0% medium-term target.
• Eurozone GDP growth for 2026 is projected to average 1.2%, proving resilient against global trade tensions.

SAHI Perspective

The ECB's decision to maintain a 2.15% rate suggests a shift in focus from controlling inflation to monitoring currency-driven growth risks. With the Euro trading above $1.20, the Governing Council is likely prioritizing stability to protect export-heavy economies like Germany. SAHI anticipates a neutral-to-dovish bias through Q2 2026 if inflation continues to undershoot.

Closing Insight

As the ECB transitions into a plateau phase, the focus for traders shifts to policy signaling and currency management in a post-inflationary landscape.

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