European Central Bank Holds Steady: Rate Cut Off the Table for December
Barclays and BofA have revised their forecasts and no longer expect the ECB to cut interest rates in December. The ECB maintains a steady rate of 2% for the third consecutive meeting amid reduced economic risks and eurozone resilience. Future rate cut predictions vary among major financial institutions.
The European Central Bank (ECB) has maintained its interest rates at 2% for the third consecutive meeting, defying previous forecasts of a December rate cut by major financial groups Barclays and BofA Global Research.
The central bank considers its current policy position favorable as economic risks diminish and the eurozone demonstrates resilience amidst ongoing uncertainties. Barclays, which had initially predicted a rate cut, now expects the ECB to maintain the current rate through 2026, whereas BofA anticipates a potential quarter-point cut in March.
Other brokerages like Goldman Sachs and UBS Global Wealth Management are aligning with the view that the ECB will keep rates steady. Current market data shows minimal chances of a December rate cut, reflecting a cautious monetary stance in the foreseeable future.
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