The ECB keeps interest rates unchanged.
As widely expected, the European Central Bank (ECB) left official interest rates unchanged yesterday. The deposit facility rate remains at 2%, the main refinancing rate at 2.15%, and the marginal lending facility at 2.40%.
You can read the full statement here: ECB Monetary Policy Statement.
Controlled inflation, low growth in Europe
The situation in Europe contrasts sharply with that of the United States. While the Federal Reserve is cutting rates amid strong economic growth and inflation still above target, Europe’s economy remains stagnant and inflation is now very close to the long-term 2% target.
Wage growth is moderating, and energy prices continue to fall. In this context, the ECB expects these factors to help stabilize inflation around its target.
There is therefore little reason to move rates from the current 2%, which seems a level of balance. President Christine Lagarde summarized this by saying that European monetary policy is currently “in a good place.” Lagarde also expressed concern about trade tensions and the geopolitical situation, while showing confidence in the strength of the labour market and the balance sheets of the European private sector.
Meeting-by-meeting approach
The ECB maintains its “meeting-by-meeting” approach — meaning it will make decisions based on incoming economic data, without committing to any predefined path. Among the sectors providing support, Lagarde highlighted services — especially tourism — and the adoption of digital and artificial intelligence technologies. By contrast, manufacturing continues to suffer from tariffs and the strengthening of the euro, which makes European exports more expensive.
For now, there appear to be no strong reasons to change official rates, which could remain at current levels for the coming months.
Savings Portfolio remains in euros at 1.60%
Regarding our portfolios, official rates are particularly relevant for savings portfolios, as these directly reflect rate movements, net of fees. In this context, our euro savings portfolios remain a solid option for those seeking to preserve value and earn a reasonable return without taking on risk.
Following the ECB’s decision, the net yield (IRR) of our euro savings portfolios stands at 1.60% (unchanged). inbestMe’s savings portfolios are an ideal solution for those looking to manage liquidity and emergency funds. Our savings portfolios’ IRRs have consistently outperformed traditional bank deposits: accumulating 7.7%, almost 2% more in euros than bank deposits (5.8%) up to one year (see chart below).
For other investment goals, other portfolio options: target-return portfolios, bonds, index funds, and pension plans
For investors who prefer to lock in a specific return for a longer period, who can tolerate slightly more risk, or can commit to a timeframe, we offer a complete range of target-return and bond portfolios (in both euros and US dollars) that allow longer duration exposure.
These portfolios have become more attractive following this year’s ECB rate cuts.
If your investment horizon is medium or long term, it is more convenient to consider our index fund portfolios, and for retirement, our pension plan portfolios, as shown in the table above.
All of them have generally delivered excellent performance despite the volatile environment of the first half of 2025.
In September 2025 we reported that although expected returns are exceeding forecasts, it is best to stay with the plan.
