If the European economy weakens further then the European Central Bank might cut interest rates again, policymaker Yannis Stournaras told Bloomberg TV in an interview on Friday, adding that "this is not expected".

Looking further forward, the ECB is forecasting an inflation rate of just 1.6 per cent for 2026, meaning it would undershoot its medium-term inflation target of 2 per cent.

Inflation at 1.6%; Prior Forecast 1.9% ECB Sees 2027 Inflation at 2%; Prior Forecast 2%