ECB Governing Council Signals Measured Easing Path as Headline Inflation Hits 2.1%
Three European central bank officials point to benign wage settlements, lifting Eurozone sovereign bonds and cyclicals across Frankfurt and Paris.
Lucas Meyer
Head of Global FX · Vizyon Capital
Senior European Central Bank policymakers struck a noticeably dovish tone in public remarks this week, noting that Eurozone disinflation remains firmly on track toward the 2% medium-term objective. Headline inflation cooled to 2.1% while third-quarter GDP eked out a modest 0.4% expansion.
Money market swap curves now price a 75% probability of another 25 bps deposit-rate reduction at the upcoming Governing Council meeting.
German DAX 40 shares responded positively, hovering near 23,815 as lower borrowing costs brighten the 2026 capital expenditure outlook for industrial exporters.
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