REVIEW: ECB Keeps Rates Steady, With “No Set Date For Any Move”

by Brunello Rosa and Nato Balavadze

In this paper, we discuss:

• The ECB’s decision to keep rates unchanged, with Lagarde stressing there is “no set date for any move.”
• A data-dependent stance, with the Governing Council keeping all options open amid high uncertainty.
• Updated forecasts showing slightly stronger growth and inflation easing below target in 2026–27 before returning to 2% in 2028.
• Market reaction, with bund yields lower, and equities firmer after the decision.

Download PDF: ECB Review December 2025