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.

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Newsquawk Daily US Opening News - 6th February 2026

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

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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.

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