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2025-10-31 00:39:42
[ESB: Eurozone Economy Resilient, Justifying Unchanged Interest Rates] Stefan Gerlach of ESB stated in a report that Eurozone growth is not weak enough to justify a rate cut by the European Central Bank (ECB). The ECB kept interest rates unchanged on Thursday, as expected. Gerlach said that while Eurozone growth has slowed, the slowdown is not significant enough to justify another rate cut. Inflation is also close to the target. The chief economist said the ECB's decision not to release forecasts in October was another reason for keeping rates unchanged. However, weak forecasts in December could sway the ECB. "If the December forecasts show inflation significantly below the 2% target in 2028, or a sharp weakening of economic activity, then the likelihood of a rate cut will increase," he said.
