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Finance

Barclays, BofA sees no further ECB easing in 2025

Published by Global Banking and Finance Review

Posted on October 31, 2025

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(Reuters) -Barclays and BofA Global Research have revised their forecast and no longer expect the European Central Bank to cut interest rates in its December meeting, after the ECB kept rates unchanged on Thursday.

The ECB kept interest rates steady at 2% for the third meeting in a row and said that policy was in a "good place" as economic risks recede and the euro zone shows continued resilience in the face of uncertainty.

Both brokerages had previously pencilled in a 25-basis-point rate cut at the central bank's December policy meeting.

Barclays expects the ECB to keep interest rates unchanged through the end of 2026, while BofA anticipates a quarter-point cut in March.

"The ECB continues to convey very little, if any, conviction on whether and for how long the current stance will persist," Barclays said in a note on Thursday.

Meanwhile, brokerages including Goldman Sachs and UBS Global Wealth Management reiterated their expectations that the ECB will keep interest rates on hold for the foreseeable future.

Current market consensus suggests little to no chance of a rate cut in December this year, according to data compiled by LSEG.

(Reporting by Joel Jose in Bengaluru; Editing by Janane Venkatraman and Vijay Kishore)

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