HSBC Analysts Predict ECB’s July Meeting to Maintain Current Rates, Remain Vague on Future Plans

In a forecast by HSBC economists Fabio Balboni and Simon Wells, the European Central Bank (ECB) is expected to keep interest rates unchanged during its meeting on July 18. Additionally, the ECB is not anticipated to provide any specific guidance for the September meeting.

"Since the June session, ECB officials have generally softened their previously hawkish stance," the economists noted. "This reinforces our view that while the pace of rate cuts remains uncertain, the direction is clear."