ECB: Policy rate seen steady through 2027 – Danske Bank
|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.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.