12:44 PM EDT, 10/29/2026 (MT Newswires) -- Danske Bank Research still expects the European Central Bank to conclude 2026 with a final 25-basis-point rate hike in December, taking the deposit rate to 2.75%, after leaving its key rates unchanged at its October meeting on Thursday. "During the press conference, however, [ECB President Christine] Lagarde said that they discussed a hike today, but decided to wait for more data, which they will have in December. If the upcoming data confirms what they see now and there are no major new developments, 'the direction is quite clear', according to Lagarde. We view this as clear guidance for a hike in December, although it might not be representative of the entire [Governing Council] given the more dovish press statement," the research firm said, noting that it continues to see 2.75% as the terminal rate. The central bank is then projected to leave the deposit rate unchanged at this level throughout 2027. Regarding Lagarde's announcement that she would step down as ECB chief on Feb. 7, 2027, Danske Bank said it was "not a big surprise" amid several months of rumors that she would leave her post before the end of her term. Lagarde was appointed to the role in November 2019 for a nonrenewable term of eight years.

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