Interest rates in the eurozone were kept unchanged at 2.15% by the ECB, in line with expectations and with no change from the previous meeting. Markets had given no chance of a different outcome. In its statement, the Bank noted that the “inflation outlook” remains broadly the same as at the last meeting.
The deposit rate was maintained at 2%, the level where inflation currently appears to be stabilizing. According to the Bank’s statement, inflation forecasts have not changed significantly; they edged slightly higher (2.1% for 2025 vs. 2.0% in June; 1.7% for 2026 vs. 1.6% previously expected in June).
At the same time, investors expect the U.S. Federal Reserve to cut rates by 50 basis points this year (64 out of 107 survey responses), while a smaller group is even pricing in up to 75 bps of cuts by year-end (40 out of 107 responses), according to the latest economic survey.
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