Development

Barclays sees no further ECB rate cuts before end-2026 after policy decision

The ECB kept interest rates steady at 2% for the third meeting in a row.

Barclays revised its forecast for the European Central Bank’s rate trajectory, expecting it to keep interest rates steady in its December meeting from its earlier view of a quarter point cut, after the ECB kept rates unchanged on Thursday.

The ECB kept interest rates steady at 2% for the third meeting in a row and said that policy was in a “good place” as economic risks recede and the euro zone shows continued resilience in the face of uncertainty.

British brokerage expects the central bank to hold the interest rates steady through the end of 2026.

“The ECB continues to convey very little, if any, conviction on whether and for how long the current stance will persist,” Barclays said in a note on Thursday.

© ZAWYA

GLOBAL BUSINESS AND FINANCE MAGAZINE

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