David McNamara: All eyes on the US Federal Reserve as ECB holds rates for now

Markets are fully pricing in a rate cut by the Fed this week

ECB president Christine Lagarde stated the ECB’s policy setting continued to be “in a good place” and that “inflation is where we want it to be”. Picture: Andres Poveda

The ECB’s Governing Council meeting for September saw the central bank leave interest rates on hold for a second consecutive meeting. The deposit and refi rates were maintained at 2.00% and 2.15%, respectively. 

However, the September meeting statement was short and offered little in the way of new guidance, other than to note that inflation “is currently at around the 2%” target and that the “assessment of the inflation outlook is broadly unchanged”.