Euro Area Interest Rate

ECB policymakers agreed that keeping interest rates unchanged remained appropriate amid elevated uncertainty, with some members even suggesting that no additional easing may be necessary, according to the minutes of the October 29–30 meeting. The Governing Council judged that monetary policy is currently “in a good place,” supported by a resilient economy and inflation moving close to target. However, officials emphasized that inflation risks remain two-sided and stressed that the 2% deposit rate should be viewed as “sufficiently robust” for managing potential shocks. With the economic and inflation outlook broadly aligned with the ECB’s September projections, several policymakers argued that the rate-cutting cycle may have already reached its endpoint, as long as current favorable conditions persist. Others, however, urged maintaining a fully open stance regarding future policy moves.