British News Agency

Markets expect the European Central Bank (ECB) on Thursday to keep interest rates unchanged, echoing the U.S. Federal Reserve’s (Fed) latest decision, as policymakers assess the impact of a weak U.S. dollar and low-priced Chinese imports on the inflation outlook.

The ECB has kept monetary policy unchanged since June, and investors do not expect significant changes in the coming months, given the resilience of the eurozone economy and inflation running close to the target.

Although officials say policy is in a “good place,” risks are emerging on the horizon. Last week, ECB policymaker Martin Kocher warned that further strengthening of the euro could push the central bank to resume interest rate cuts.

Meanwhile, his colleague François Villeroy de Galhau said the recent depreciation of the dollar is one of the key factors shaping the ECB’s future policy stance.