LONDON (Reuters) -The European Central Bank kept interest rates unchanged at 2% in a well-telegraphed decision on Thursday, offering no clues about its next move, even as investors keep betting that one
final cut may be on the agenda in the months ahead.
The euro held lower after the decision, down around 0.4% on the day at $1.156, while euro zone government bond yields were also little changed and Europe's broad STOXX 600 index remained around 0.5% lower.
MARCHEL ALEXANDROVICH, EUROPEAN ECONOMIST, SALTMARSH ECONOMICS, LONDON:
"No surprises from the ECB, with interest (rates) left unchanged and no real shift in language from the meeting six weeks ago. Similarly, in the press conference, Christine Lagarde is likely to reiterate that policy ‘remains in a good place’."
IRENE LAURO, EURO ZONE ECONOMIST, SCHRODERS:
"We remain confident that growth will strengthen into next year, supporting the ECB’s decision to keep interest rates on hold into 2026. However, if inflation comes in lower beyond current projections, the ECB could follow the Fed’s risk-management approach and deliver a precautionary rate cut. For now, the outlook for the eurozone has shifted positively—a welcome change after months of stagnation."
ARNE PETIMEZAS, DIRECTOR RESEARCH, AFS GROUP, AMSTERDAM:
"ECB rates unchanged as expected, and again, no forward guidance, but a repeat of the wait-and-see approach. Positive undertones in the Governing Council statement, cheerleading the resilience of the economy. A sign where the press conference is going, where we should expect a more upbeat President Lagarde."
(Reporting by the Reuters Markets Team; Compiled Dhara Ranasinghe; Editing by Amanda Cooper)
