ECB Set to Hold Rates Through 2026 on Steady Economic Outlook: Reuters Poll

• The European Central Bank will hold interest rates at least until the end of 2026, according to a majority of economists polled by Reuters, who also expected the euro zone economy to grow steadily with contained inflation despite a highly uncertain global outlook.
• A 73.0% majority, 65 of 89, said rates would stay through the middle of next year. A two-thirds majority, 46 of 71, expected no further rate changes through the end of next year, up from 57.0% in last month's survey. Only 21 expected one or more rate cuts by the end of 2026.
• The case for a longer pause has strengthened since the ECB last cut rates in June, with inflation remaining persistently around the 2.0% target, growth stable and unemployment at a record low. By contrast, some of its peers, including the United States, have struggled in part due to the White House applying sweeping tariffs on imported goods at rates not seen since the 1930s.
• Banking on that resilience, the ECB kept rates on hold in October for a third straight meeting. Many Governing Council members suggested the central bank was set for a long hold. Last month, President Christine Lagarde said the central bank was "in a good place," but emphasised that it was not "a fixed good place".

(Source: Reuters)