ECB keeps interest rate at 2.5%, but is expected to rise to 2.75% in December

The European Central Bank (ECB) has decided to maintain the main interest rate at 2.5%, with expectations of an increase to 2.75% in December. ECB President Christine Lagarde announced her departure in February 2027, coinciding with economic uncertainties in Europe. Inflation currently stands at 3.8%, significantly above the ECB's target of 2%. The ECB is cautious due to fluctuating public finances in countries like France and the potential for worsening economic conditions. The bank's future decisions will depend on inflation prospects and economic data, amid rising energy prices and geopolitical tensions affecting growth.