The European Central Bank is leaning towards keeping interest rates unchanged, with December a key window

ECB policymakers are convinced that a 2 per cent inflation rate does not need to be cut further, although new economic forecasts suggest it will be below 2 per cent for the next two years, according to people familiar with the matter. Unless the eurozone suffers another major shock, borrowing costs will remain at current levels for some time, the people said. While a rate cut at the October meeting is all but ruled out, December will be an opportunity for reassessment as the new quarterly forecast will cover 2028, the people said. An ECB spokesperson declined to comment.