Eurozone's inflation hits 1.7%: ECB keeps interest rates unchanged

Business Feb 05, 2026

The European Central Bank (ECB) is keeping its main interest rates steady, even as Eurozone inflation dropped to 1.7% in January—just under their 2% goal.
So, borrowing costs aren't changing for now.

Eurozone economy is holding up well

Even with global challenges like higher tariffs and a pricier euro, the Eurozone's economy is holding up.
Growth in services is being powered by investments in AI, more government spending on defense and infrastructure, and low unemployment.
Banks are lending more but staying cautious.

ECB takes a cautious approach

The ECB isn't making any big promises—they're taking things meeting by meeting, watching inflation numbers and economic trends closely.
If needed to hit that 2% target, they're ready to tweak rates or policies down the road.