Saltmarsh Economics European economist Marchel Alexandrovich says the ECB held
rates as expected but signalled a December rate hike remains a likely option,
citing upside risks to the inflation outlook. ECB President Lagarde confirmed
she will depart in February next year rather than the previously expected
October; together with expected near-term exits for Isabel Schnabel and Chief
Economist Philip Lane, the ECB faces a major leadership reshuffle in 1H 2027.
Saltmarsh expects next year’s policy stance or actions to remain broadly
unchanged, but says market-facing communications under the new leadership will
be a key risk for rates and market positioning.
