Danske Bank analysts note that for a fifth straight meeting the ECB kept its key policy rate at 2.00%, in line with expectations. President Lagarde emphasized strong labour markets and solid balance sheets, while downplaying sub‑target inflation and Euro strength. Analysts expect the ECB to leave the policy rate unchanged at 2.0% throughout 2026 and 2027.
Lagarde stresses positives as rates on hold
“For the fifth consecutive meeting, the ECB left its key policy rate unchanged at 2.00%, aligning with expectations.”
“Despite headline inflation falling below the ECB’s 2% target, there is a clear bias towards holding the deposit rate steady in our view.”
“Headline and core inflation to average below 2% in 2026 and 2027”
“Decent growth to continue in 2026 and 2027”
“ECB to keep the policy rate unchanged at 2.0% in 2026 and 2027”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/ecb-policy-rate-seen-steady-through-2027-danske-bank-202602101427
