BofA expects ECB to hold rates in 2026 (prev. 25bp cut in March), sees 25bps cuts in March and June 2027

BofA expects ECB to hold rates in 2026 (prev. 25bp cut in March), sees 25bps cuts in March and June 2027.

This expectation from BofA indicates a shift in the ECB's rate outlook, suggesting they may maintain rates steady into 2026 rather than execute an expected cut in early 2026. This could signal a more hawkish stance than previously priced in, which may have implications for the euro’s strength, bond yields, and overall market sentiment regarding European monetary policy.