The European Central Bank (ECB) decided on Thursday to keep its key deposit facility rate unchanged at 2% for the third consecutive time, following its last rate cut in June. The move maintains rates at their lowest level since last year’s record high of 4%, when the ECB began an easing cycle as inflation fell to its 2% target.

In a statement, the ECB said inflation “remains close to the 2% medium-term target” and that its assessment of the economic outlook is largely unchanged. It highlighted continued growth in the eurozone economy, supported by a strong labor market and resilient private sector, though it warned that global trade tensions and geopolitical risks still pose uncertainties.

Eurozone inflation rose slightly to 2.2% in September, mainly due to higher service prices. Preliminary data also showed that the region’s economy grew 0.2% in the third quarter, exceeding expectations and demonstrating economic resilience despite global challenges.

ECB President Christine Lagarde said the services sector remains strong, driven by tourism and digital growth, while manufacturing has been hit by tariffs and a stronger euro. She added that consumer spending should rise as real incomes improve, helping to support growth.

Lagarde told CNBC, “From a monetary policy point of view, we are in a good place. It’s not fixed, but we’ll do whatever is needed to stay there.”

Analysts described the decision as unsurprising, noting that inflation is under control and that Europe continues to adjust to higher defense spending, weaker trade with the U.S., and reduced energy advantages. The ECB reiterated it will continue a data-dependent, meeting-by-meeting approach, with officials suggesting the easing cycle is nearing its end.