European Central Bank board member Enegel: Eurozone economic outlook unchanged, but all options will be kept at the December meeting.

Joachim Nagel, member of the Executive Board of the European Central Bank and President of the German Central Bank, stated that the economic data in the Eurozone align with the ECB's expectations, but policymakers are still keeping all options open. Nagel said on Monday that there is "absolutely no reason" to adjust borrowing costs, as the ECB maintained the deposit rate at 2% for the third consecutive meeting last week. He added, "Since the release of the latest economic forecast in September, there has been no fundamental change in the data. In December, we will make decisions based on the new forecast during the meeting. Therefore, we are keeping all options open, which I believe is the most appropriate approach given the numerous uncertainties." According to the quarterly economic forecast released by the ECB in September, the Eurozone Consumer Price Index (CPI) is expected to rise by 1.7% next year, closer to the target than the previous forecast of 1.6%; however, inflation is projected to be 1.9% by 2027, lower than previously expected. Economic growth is forecasted to be 1.2% in GDP this year, and 1% in 2026. After raising rates eight times in the past year, the ECB kept rates unchanged as expected last week, maintaining the status quo since June. ECB President Lagarde reiterated that the ECB is in a "favorable position" and emphasized taking all necessary measures to maintain this favorable situation. Despite inflation hovering around the target of 2%, the Eurozone economy has shown resilience to US tariffs and geopolitical tensions, surpassing expectations with 0.2% economic growth in the third quarter and better-than-expected Purchasing Managers' Index (PMI) in October, indicating a strong start to the final quarter of 2025. However, some dovish policymakers are concerned that economic growth may fall below expectations, increasing the risk of inflation staying below the 2% target in the long term. Furthermore, Nagel praised the resilience of the German economy and stated that Germany is now on a "path of moderate growth," with increased infrastructure and defense spending contributing to this trend. He said, "Next year, we will definitely see stronger growth. If future investment spending is guided properly, this fragile sapling can grow into a strong tree, providing a stronger momentum for economic development."