Institution: The European Central Bank is unlikely to raise interest rates again, but may keep rates at a high level for a longer period of time.

Oliver Rakau of the Oxford Economics Research Institute stated in a report that with energy prices falling and suppressing inflation, it is expected that the European Central Bank will not raise interest rates again. He added, however, that in the face of upward risks to medium-term inflation, the central bank may keep rates at elevated levels for longer than previously expected. "The ECB may choose a scenario of 'keeping rates high for longer,' which means the timing of reversing the June rate hike could be much later than our predicted date of March 2027, or not at all," Rakau said. He added that while the relatively weak economy limits the risk of second-round effects from energy shocks, Germany's fiscal stimulus measures and the weakening euro could still bring upward pressure. He also mentioned that if the conflict in the Middle East were to erupt again, another small rate hike could still be an option.