Standard Chartered Global Research has indicated that the European Central Bank (ECB) is unlikely to raise interest rates in October. The research team notes that core inflation in the euro area has only slightly increased since January, while rising yields present downside risks to both growth and inflation, according to FX Street.
Given these factors, Standard Chartered expects the ECB Governing Council to postpone any rate hikes until after new macroeconomic projections are released at the December policy meeting. This suggests policymakers are taking a cautious approach amid uncertain economic conditions.
For Japanese investors, the ECB's cautious stance highlights ongoing challenges in the eurozone that could influence currency and equity markets, emphasizing the importance of monitoring European monetary policy developments in the months ahead.