The European Central Bank (ECB) reiterated in its newest economic bulletin published on Thursday that the Governing Council is "not pre-committing to a particular rate path" for the near future as it will continue to analyze the incoming data, particularly on inflation, before making a final call.

The institution predicted that headline inflation will stand at 2.5% in 2024, 2.2% in 2025, and 1.9% in 2026, and the economic expansion at 0.8% in 2024, rising to 1.3% in 2025, and 1.5% in 2026, with the latter being slightly revised down compared to June's assessment.

The bank admitted to the continued presence of inflationary risks, such as Russia's military operation in Ukraine, the crisis in the Middle East, and climate change. "Growth could also be lower if the lagged effects of monetary policy tightening turn out stronger than expected," the ECB warned.