Deutsche Bank: Eurozone resilience keeps ECB doves in check

Deutsche Bank says ECB resilience keeps doves in check

Deutsche Bank’s chief European economist said the European Central Bank’s decision to hold rates steady reflects the region’s underlying economic resilience, despite multiple global headwinds.

“Where’s the smoking gun for a rate cut?” he asked, noting that even amid U.S. tariffs and broader geopolitical uncertainty, the eurozone economy continues to eke out modest growth. That durability, he added, is keeping the ECB’s dovish camp restrained and ensuring the policy pause remains firmly on track.

The remarks align with the ECB’s tone at Thursday’s meeting, where policymakers maintained a cautious stance while acknowledging uneven growth and cooling inflation — signalling little urgency to resume easing.

—

Earlier:

• ECB Lagarde: Inflation is unchanged. Economy should benefit from consumption. Labor cooled
• The full statement from the ECB October rate decision
• ECB keeps refinance rate unchanged at 2.15% as expected. Deposit rate unchanged at 2.00%

Compare DB’s view with this:

• Goldman Sachs says ECB rate cut risk underpriced as data stay mixed

Deutsche Bank’s comments reinforce expectations that the ECB will stay on hold through early 2026 unless growth falters further. Limited downside in euro yields or EUR/USD likely near term.

This article was written by Eamonn Sheridan at investinglive.com.