ECB holds rates unchanged, still 'in a good place'

Group 1 - The European Central Bank (ECB) has kept interest rates unchanged at 2% and has not provided guidance on future rate changes, despite expectations for additional support as inflation is projected to dip below the target next year [1][2] - Recent data supports the ECB's positive outlook, allowing policymakers to assess the impact of external factors such as U.S. tariffs and political issues in France on growth and inflation [2][4] - Inflation is projected to temporarily fall to 1.9% in 2027, below the 2% target, with core inflation also expected to be below the target at 1.8% [3] Group 2 - The ECB is likely to maintain current interest rates for an extended period, with market expectations indicating a 50-60% chance of one last rate cut by spring [4] - The debate among policymakers is centered around the resilience of the euro zone economy, with some members arguing against further easing due to strong private consumption and industrial production [5] - Adaptability of firms in response to U.S. tariffs is noted, with the certainty of an agreed deal mitigating some negative impacts [6]