The European Central Bank (ECB) is expected to maintain its current borrowing costs as it monitors ongoing bond-market instability in France and rising energy prices. The deposit rate will remain at 2.5% on Thursday, according to a Bloomberg survey of economists. Only one economist predicted a change, while the rest anticipate a final rate hike in December.
Analysts are looking ahead to December for new forecasts that will provide insights into consumer-price trends through 2028. The outlook is complicated by potential disruptions to oil and gas supplies due to the Iran war, which could further impact energy costs.
The decision to hold rates steady reflects the ECB's cautious approach amid economic uncertainties. The December rate hike, if it occurs, would mark the third increase this year, aligning with the bank's strategy to balance inflation risks with financial stability.