Overview

• The deposit rate stays at 2.0% for a second straight meeting after last year’s series of cuts, with policymakers maintaining a wait‑and‑see approach.
• New staff projections point to euro‑area growth of about 1.2% this year and inflation near 2.1%, reflecting a slightly firmer outlook.
• The Governing Council says it is not pre‑committing to a preset rate path and will calibrate policy based on incoming data.
• Rising risk premia on French government bonds have sharpened focus on sovereign spreads, with market speculation about possible TPI use tempered by its strict activation hurdles.
• Consumer savings rates show a tentative uptick, with Verivox reporting average Tagesgeld offers at 1.28% and modest rises in fixed‑term yields.