Barclays expects the European Central Bank to keep interest rates unchanged at its December meeting.

Following the European Central Bank’s decision to keep interest rates unchanged on Thursday, Barclays revised its forecast for the ECB’s rate trajectory, now expecting it to maintain rates at the December meeting. Previously, the bank had anticipated a 25-basis-point rate cut.

The European Central Bank kept interest rates steady at 2% for the third consecutive meeting on Thursday and stated that with economic risks receding, the eurozone has shown sustained resilience in the face of uncertainty, with policy in a ‘good place.’

Barclays said it now expects the ECB to keep rates stable through the end of 2026.

In a report, the bank wrote: ‘The ECB remains largely unconfident about whether the current stance will persist and, if so, for how long.’