The European Central Bank left its key deposit rate unchanged at 2.0% on Thursday, keeping borrowing costs steady as officials wait for inflation pressures to ease further. The decision matched market expectations and reflected caution after a recent series of policy cuts.

In its latest guidance, the ECB signalled that more easing is not likely soon. Policymakers pointed to persistent core inflation, which remains above the bank’s target, even as headline price growth has cooled from earlier peaks.

The hold suggests the central bank wants more evidence that inflation is firmly under control before moving again. For households and businesses across the euro area, the decision means rates are likely to stay restrictive for now, keeping pressure on credit and lending conditions.

The ECB’s cautious stance also underscores the balancing act facing the eurozone economy: supporting growth without reigniting price increases. Analysts will now watch upcoming inflation data and comments from ECB officials for clues on the timing of any future policy shift.