The European Central Bank is reportedly inclined to keep interest rates unchanged unless there is an economic shock.

According to informed sources, European Central Bank policy makers are confident that they can achieve their 2% inflation target without further interest rate cuts, despite the latest economic forecasts showing that inflation may be below target in the coming years. The sources indicated that unless the eurozone experiences another major shock, borrowing costs are likely to remain unchanged for some time. While the possibility of a rate cut at the October meeting is almost ruled out, the December meeting will provide an opportunity for reassessment, with new quarterly forecasts covering 2028. A European Central Bank spokesperson declined to comment.