ECB December Meeting Preview: No Rate Cuts! Will There Be Rate Hikes in 2026?
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The European Central Bank will announce its interest rate decision on December 18, with the market expecting it to remain unchanged at 2%. There are differing views on the interest rate path for 2026; Citigroup expects it to remain until the end of 2027, while Morgan Stanley predicts a drop to 1.50% in the first half of 2026. The euro against the US dollar is influenced by interest rates, with Morgan Stanley forecasting it to rise to 1.30, while Citigroup believes it will fall to 1.10 in the third quarter of 2026
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