FRANKFURT, Nov 27 (Reuters) - European Central Bank policymakers were in no hurry to cut rates when they met last month as uncertainty remained exceptionally high and it was possible that no further easing would be needed, the accounts of their October 29-30 meeting showed on Thursday.
The ECB left interest rates unchanged at the meeting, arguing that policy was in a "good place" as the economy was showing resilience and inflation was firmly at target.
This solidified confidence among investors that no further rate cut was coming this year and markets now see just a one-in-three chance of more easing in 2026.
"There continued to be a high option value to waiting for more information," the ECB said in the accounts of the October meeting. "The current level of policy rates should be seen as sufficiently robust for managing shocks."
Some even thought the ECB may be done cutting rates.
"The view was expressed that the rate-cutting cycle had come to an end, since the current favourable outlook was likely to be maintained unless risks materialised," the ECB added.
Economic data since the meeting has solidified market bets.
Indicators suggest that the bloc continues to grow, though at an unspectacular pace, and inflation remains firmly around the ECB's 2% target.
However, rate cut talk may resume next year, when inflation is set to fall below the ECB's target, mostly on base effect as energy prices are sharply lower.
While the ECB traditionally looks through inflation volatility caused by energy price swings, some governors have warned that below-target readings could weigh on inflation expectations and perpetuate anaemic price growth.
Reporting by Balazs Koranyi; Editing by Alex Richardson, Alexandra Hudson
Source: Reuters