ECB Holds Steady on Rates as Inflation Hits Target, Market Awaits October Decision

The European Central Bank sees current interest rates as appropriate after eurozone inflation reached its 2% target, according to governing council member Pablo Hernández de Cos. The remarks come amid growing anticipation for the ECB's October 30 policy meeting, where analysts expect the deposit rate to remain unchanged at 2%.

Diverging views emerge within the ECB as Malta's Edward Scicluna warns against premature policy shifts, citing uncertainty from US trade tariffs. The conflicting pressures of potential import price inflation versus slowing global trade complicate the outlook, with Scicluna advocating for patience in monetary adjustments.

Market participants increasingly view the ECB's cautious stance as a potential tailwind for risk assets. The prospect of sustained accommodative policy in Europe contrasts with tightening cycles elsewhere, creating favorable liquidity conditions for digital assets and alternative investments.