Overview
- The Governing Council left policy unchanged for a third straight meeting, following holds on July 24 and September 11.
- Latest readings show eurozone inflation at 2.2%, third-quarter GDP growth of 0.2%, and unemployment at 6.3%.
- Lagarde cited resilient labor markets, solid private-sector balance sheets and the effects of earlier rate cuts as supports for activity.
- Markets widely anticipated the hold, while some analysts continue to call for a 25 basis point cut to bolster recovery.
- Declining energy prices and unresolved global trade frictions—despite tentative progress at the U.S.–China summit in Seoul—were flagged as downside risks that could steer policy toward easing later.