(MENAFN) Experts believe that the European Central Bank (ECB) may have concluded its cycle of rate reductions, and it is not anticipated that the bank will lower rates at its upcoming meeting this month.

This outlook is driven by persistent inflation trends across the eurozone and the gradual yet consistent economic recovery.

Attention in Europe has focused on the ECB’s monetary policy decision this week, with remarks from ECB President Christine Lagarde expected to provide insights into the institution’s prospective policy direction.

Bas van Geffen, senior macro strategist at Dutch Rabobank, told a news agency that data releases since the September meeting have been sluggish, observing that “the doves may cede their push for a cut fairly quickly this month.”

Geffen indicated that he does not foresee any policy changes or fresh guidance on future decisions from Lagarde’s speech this week, emphasizing that by December — when a more detailed policy discussion is planned — additional data will have become available.

“We believe the ECB’s cutting cycle is done, but additional easing requires a materialization of significant downside risk, and we maintain that the ECB’s cutting cycle is effectively done,” he stated.

“The ECB also holds in December, the odds that the next move will be a rate hike increase substantially.”

Marco Wagner, senior economist at Commerzbank, told the news agency that it is highly improbable the ECB will adjust its key interest rates given ongoing supply chain disruptions, which continue to heighten inflationary pressures.

“According to the ECB survey, consumers currently expect inflation to exceed the 2% target,” he added.

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