Markets anticipate that the European Central Bank (ECB) will leave policy rates unchanged on Thursday, with the deposit rate remaining at 2%. Against this backdrop, the ECB's policy statement could influence market sentiment.

Padhraic Garvey and Benjamin Schroeder of ING Groep NV noted in a report, "The focus of this meeting will center on the ECB's policy communication and expectations management." The strategists highlighted that the prevailing market expectation is for the ECB to maintain a dovish easing bias.

According to data from LSEG, markets have currently priced in a 10-basis-point rate cut by the ECB before mid-2026.

Garvey and Schroeder added, "We believe that if the ECB deems easing necessary—whether due to lagging negative effects from U.S. tariff policies, a stronger euro, political developments in France, or delays in Germany's fiscal stimulus measures—its easing actions are unlikely to stop at just one rate cut."