ECB post-meeting comment: Déjà vu

Today’s press conference felt a bit like a déjà vu. The ECB saw the inflation outlook as broadly unchanged, and the ECB kept interest rates on hold for a second time in a row. And, much like last meeting, President Lagarde kept all options open. But, just like in July, the market interpreted her words as hawkish. We agree, and we maintain that the ECB’s cutting cycle is over, unless substantial downside risks materialise.