ECB Expected to Hold Rates Steady Next Week Amid Growth and Hiking Outlook Focus

ECB Expected to Hold Rates Steady Next Week Amid Growth and Hiking Outlook Focus, as liquidity and crypto markets remain sensitive to central bank signals. Investors anticipate the European Central Bank (ECB) will maintain its benchmark interest rate at 2% during its upcoming meeting, shifting focus to its economic forecasts. ECB President Lagarde stated that policymakers may revise growth projections upward for the eurozone, which, combined with ongoing inflation, has increased traders' bets on future rate hikes. However, due to ongoing debates over the policy direction and recent shifts in swap market pricing, traders will closely watch for subtle signals on the timing of potential rate increases. RBC Capital Markets economist George Morlan expects no ECB rate hikes in 2026, noting that 'cyclical tailwinds may be temporary' and that the ECB has 'clearly stated it does not want to overreact to temporary deviations from targets.' This environment is also being monitored for any implications on Countering the Financing of Terrorism efforts within financial systems.