The ECB kept interest rates unchanged as expected and did not provide any indication of its next steps. This indirectly reinforced expectations that the eurozone's monetary policy will remain stable for a long time.
Resilient economic growth and declining price pressures have reduced the need for additional policy support, with inflation close to its 2% target in the medium term.
The ECB stressed that the eurozone economy remains strong despite global uncertainties, including trade policy and geopolitical tensions, and will continue to adopt a data-led approach.
Despite the strengthening of the euro and inflation temporarily below target, the ECB stressed that the exchange rate is not a policy target and is only one of many factors in assessing inflation.
Economists expect interest rates to remain unchanged in 2026, with Deutsche Bank seeing the possibility of policy tightening in 2027 if domestic resilience continues to outweigh external risks.
