Katharine Neiss, PhD, Deputy Head of Global Economics and Chief European Economist, reacts to the European Central Bank's October Monetary Policy Meeting, where the bank held interest rates at 2%. President Lagarde highlighted stronger-than-expected economic activity and steady inflation as key factors behind the decision, signaling that rates are likely to remain stable for the foreseeable future.
Looking ahead, the ECB faces the challenge of proving its commitment to a symmetric 2% inflation target by 2026—a goal it has struggled to demonstrate in the past. However, today’s decision suggests progress toward achieving that objective.
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