Analysts Say ECB Unlikely to Cut Rates Soon Despite Weak Eurozone Outlook

Key TakeawaysPansen Macro analyst Claus Vistesen expects the European Central Bank (ECB) to maintain current interest rates in the coming months.Despite sluggish growth, eurozone GDP is projected to rise 0.1% in Q3, slightly above ECB’s own forecast.The ECB reportedly views the current slowdown as temporary, mainly due to weaker manufacturing output.The European Central Bank (ECB) is unlikely to cut interest rates in the near term, even as the eurozone economy shows signs of stagnation, according to Claus Vistesen, an analyst at Pansen Macro.Vistesen told Jinshi Data that the ECB appears cautious about easing monetary policy too quickly, noting that policymakers still view current weakness as temporary rather than structural.According to Pansen Macro estimates, eurozone GDP could edge up by 0.1% in the third quarter, reflecting marginal growth after months of sluggish industrial activity and subdued consumer demand.“This outlook is actually more optimistic than the ECB’s own projection,” Vistesen said, adding that the central bank likely attributes the slowdown to a sharp drop in manufacturing output, not a broader economic collapse.