The European Central Bank (ECB) is expected to leave interest rates unchanged at its next meeting in December, according to analysts at Barclays, the brokerage firm, which revised its previous forecast of a 25-basis-point cut.
The analysts added in a note that they do not expect the ECB to change interest rates again until the end of 2026, arguing that policymakers have shown "very little, if any, conviction" about when they will change their policy stance.
On Thursday, the ECB kept interest rates steady for the third consecutive meeting, as policymakers adapted to an economic backdrop of low inflation and steady growth.
The ECB maintained its main deposit rate at 2%, the level it lowered in June after halving it from a record high of 4% in just over a year.
European Central Bank President Christine Lagarde later said monetary policy was "in a good place," citing reduced downside risks to growth following the trade deal between Europe and the United States and the tariff agreement reached this week between US President Donald Trump and his Chinese counterpart Xi Jinping.
The EU agreed to a 15% tariff deal with the Trump administration, but the actual impact on the eurozone economy remains uncertain.
Similarly, relations between the US and China, the world's two largest economies, remain strained even after the meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea earlier on Thursday.
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