Reuters survey: European Central Bank's 2% interest rate expected to persist throughout the year, creating longest period of stable interest rates since the era of negative interest rates.

A Reuters survey shows that the European Central Bank will maintain a 2% deposit rate at least until the end of 2026 - this will be the longest period of stable rates since the era of negative interest rates, despite continued high geopolitical risks. Inflation in January dropped to 1.7%, the lowest in 16 months, prompting some policymakers to warn of excessive slowing of price growth and calling on the ECB to be prepared to take action. However, the survey indicates that out of 74 economists, 66 expect the ECB to remain unchanged until at least 2027, a expectation that has not changed since October last year. If this expectation is met, the current period of stable rates by the ECB will set a new record since the end of the era of negative rates before the pandemic. An economist at Deutsche Bank pointed out, "The base scenario is domestically resilient, with external vulnerabilities under control, giving the ECB the ability to stay put. But to be fair, there is indeed high uncertainty in the monetary policy path."