European Central Bank expected to hold interest rates, markets focus on projections

The European Central Bank (ECB) is conducting its final two-day meeting of the year, set to announce its monetary policy decision on Thursday. There is a prevailing expectation that the ECB will hold interest rates steady, directing market attention towards future economic projections and inflation outlook. After raising rates in previous months, the path to achieving the inflation target remains murky. Market participants are keenly observing how economic indicators such as Consumer Price Index (CPI) and unemployment rates may influence upcoming policy directions. Consequently, this ECB meeting is likely to induce market volatility, requiring traders to adopt a cautious approach.