LONDON (Reuters) -European stocks, government bonds and the euro held steady on Thursday after the European Central Bank kept rates unchanged at 2%, as expected, as it enjoys a rare period of low inflation and stable growth.

The ECB kept rates unchanged for a third straight meeting and said its assessment of the inflation outlook was broadly unchanged.

Markets maintained its view that the ECB would keep their deposit rate unchanged through the end of the year. Turning to next year, investors were pricing in about 8 bps of easing by year-end 2026, implying about a 32% chance of another quarter-point cut.

“Where’s the smoking gun for a rate cut? Despite the U.S. tariffs, despite all the various sources of uncertainty, the European economy continues to eke out some growth,” Deutsche Bank c

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