Overview
- The ECB left key rates unchanged on Thursday, October 29, keeping the deposit rate at 2.5% and confirming Christine Lagarde will step down on February 7, 2027.
- Energy and fuel price jumps pushed euro-area headline inflation to about 3.8% in September and analysts warn that core inflation could stay elevated, which would increase the odds of another ECB hike in December.
- Markets and economists now price a meaningful chance of a December increase while policymakers cite sovereign stress, notably higher French yields, as a reason to weigh further tightening carefully.
- Retail deposit offers have risen sharply as banks compete for funding: ten-year fixed deposits average about 3.22%, some multi-year offers reach 3.6%, and time-limited instant-access promotions go as high as 4.5% for new customers.
- Households face trade-offs: analysts estimate over €38 billion a year is lost by holding large balances in low-yield sight accounts and savers are urged to check promo durations, post-promo standard rates, conditions for switching, and deposit-insurance limits before moving money.