ECB's Villeroy says that we are in a good position with inflation in Europe.
The ECB is widely expected to hold rates steady this Thursday, keeping the main refinancing rate at 2.15% after cutting aggressively since mid-2024. With inflation now hovering close to 2% and growth steadier than feared, policymakers are set to pause and assess the impact of earlier easing. Markets will focus on the new staff projections and any remarks on political risks in France or global tariff tensions, but overall, traders see policy staying on hold into year-end, with the next move more likely in 2026.
