Simon Dangoor, interest rate strategist at Goldman Sachs Asset Management, warned that markets may be underestimating the possibility of another European Central Bank (ECB) rate cut in December or early 2026. This assessment follows the ECB's decision to hold rates steady as expected, amid an economic environment where core inflation has remained below the upper target band for five consecutive months.

"The implementation of Germany's fiscal stimulus package may lag behind schedule, weakening growth prospects and providing counterarguments for policymakers advocating rate stability," Dangoor noted in the report. "The December policy meeting will release 2028 growth forecasts—if projections show eurozone inflation undershooting targets for three straight years, dovish officials will push aggressively for earlier policy easing." Money market data indicates investors' expectations for a second ECB rate cut this year dropped from 48% to 31% post-decision.