Deutsche Bank: European Central Bank forecast suggests low interest rates will continue until 2027.

In a report, Deutsche Bank analyst Wolter said that the European Central Bank's latest forecast suggests that interest rates may remain at a low level for a longer period of time. On one hand, the staff's recent forecast for overall inflation has been slightly raised, which means that the inflation target for 2026 has been reduced from expected levels. However, lowering the core inflation forecast to 1.8% in 2027 suggests that this lower-than-expected situation may be prolonged. He said, "This could have a dovish impact on monetary policy." However, he stated that the European Central Bank is not in a rush to make judgments and the pause in interest rates may continue.