FRANKFURT – Officials held key interest rates in the Eurozone at levels set in June once again on Thursday, with main measures of economic health in the currency area forecast to support the current path for quite some time.
The European Central Bank decided to leave rates as is for a fourth straight meeting, as anticipated by economists, keeping its benchmark discount rate at 2% and thus staying the course for nearly six months. A continued hands-off approach is likely, according to most economists – some analysts said current rates could survive through all of next year, with a number predicting the next move will be an increase in interest rates sometime in 2027.
ECB President Christine Lagarde refused to commit to the direction of the bank’s next move, noting that all options remain on the table. Officials were unanimous in their decision to leave interest rates as is this month, she said, adding that neither a hike nor a cut was discussed.
“We reconfirmed that we are in a good place, which does not mean we are static,” she explained. The problem with sharing thoughts about the next step? Uncertainty.
Lagarde pointed to a number of geopolitical issues that could affect the global economy and thus ECB policy, including shifts in supply chain functionality, trade policy, and Russia’s invasion of Ukraine, with the latter in sharp focus as European leaders in Brussels tried to decide whether frozen Russian assets could be used to support Kyiv. “We simply cannot offer forward guidance,” Lagarde said.
Updated projections support status quo
The latest ECB staff forecasts showed higher estimates for both inflation and GDP growth in the years ahead, revisions many analysts had anticipated. The bank said headline annual inflation was expected to average 1.9% in 2026, up from its 1.7% estimate in September, but still below the ECB's target of 2.0% over the medium term. The outlook for 2027 was cut a tenth from September to 1.8%, and the ECB’s initial projection for 2028 was in-line with its mid-term goal.
For core inflation, which excludes energy and food, staff projected 2.2% in 2026, which was up from the previous forecast of 1.9%. The latest report also raised the 2027 outlook a tenth to 1.9% and offered a preliminary number of 2.0% for 2028. “Inflation has been revised up for 2026, mainly because staff now expect services inflation to decline more slowly,” the bank said.
The outlook for the economy has improved, the ECB noted. “Economic growth is expected to be stronger than in the September projections, driven especially by domestic demand.” GDP expansion has been revised up to 1.2% in 2026 – a number forecast by the OECD and others – from 1.0%, and to 1.4% in 2027 from 1.3%. The economy is expected to grow 1.4% in 2028, the ECB added.
Lagarde noted that Germany’s plans to spend up to EUR 1 tn or more on its military and infrastructure are likely to support the Eurozone economy as a whole.
In a note, Nordea said: “We remain happy with our current baseline forecast of unchanged rates until the second half of 2027, where we see two 25bp rate hikes from the ECB. The risks of further rate cuts has receded further, though the chance of another rate cut has not vanished altogether.
“The timing of any rate hikes obviously remains very uncertain at this point, as economic development can surprise in many ways next year, but for now it looks like 2026 will be too early for the ECB to seriously consider rate hikes.”
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/*jshint esversion: 6 */
var socket;
var assigned_server = 3001;
var distributor_server = 3010;
var publisher_channel = '';
var broadcaster_channel = '';
var remote_ip = '';
var session_info = {};
var logging_interval;
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var socket_emits = 0;
var session_start_time;
var reconnectionDelayGrowFactor = 1.2;
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var socket_close_timeout;
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self.onmessage = function (msg) {
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case 'ConnectDistributor': connect_to_distributor(msg); break;
case 'SessionStaticInfo': session_static_info(msg); break;
case 'SessionInfo': update_session_info(msg.data); break;
case 'PauseLogging': clearTimeout(logging_interval); break;
case 'RestartLogging': postMessage({action: 'RequestSessionStaticInfo' }); break;
case 'JoinPublisherChannel': join_publisher_channel(msg.data); break;
case 'JoinPlayerChannel': join_player_channel(msg.data); break;
case 'CheckChannelStatus': check_channel_status(msg.data); break;
case 'PlayerLogResponse': player_log_response(msg.data); break;
case 'CloseSocket': close_socket(); break;
case 'RequestMessageSearch': request_message_search(msg.data); break;
case 'RequestMoreMessages': request_more_messages(msg.data); break;
case 'PlayerDisconnectedAnnoucementTimeoutStart': player_disconnected_annoucement_timeout_start(); break;
case 'PlayerDisconnectedAnnoucementTimeoutClear': player_disconnected_annoucement_timeout_clear(); break;
}
};
function player_disconnected_annoucement_timeout_clear() {
clearTimeout(player_disconnected_annoucement_play_timeout);
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function send_play_disconnect_annoucement() {
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function reactivate() {
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connect_to_assigned_server();
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function player_log_response(data) {
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data_array.respond_to_socket = data.respond_to_socket;
data_array.player_socket_id = data.player_socket_id;
data_array.logs = data.logs;
var msg_string = JSON.stringify(data_array);
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function request_message_search(data) {
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data_array.search_term = data.search_term;
var msg_string = JSON.stringify(data_array);
if (socket.readyState == 1) { socket.send(msg_string); }
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function request_more_messages(data) {
var data_array = {};
data_array.type = 'request_more_messages';
data_array.publisher_channel = data.publisher_channel;
data_array.last_record_id = data.last_record_id;
var msg_string = JSON.stringify(data_array);
if (socket.readyState == 1) { socket.send(msg_string); }
}
function check_channel_status(data) {
var data_array = {};
data_array.type = 'check_channel_status';
data_array.app_name = data.app_name;
var msg_string = JSON.stringify(data_array);
if (socket.readyState == 1 && connected_to_assigned) { socket.send(msg_string); }
else { setTimeout(function() { check_channel_status(data); },500); }
}
function check_channel_status_response(data) {
postMessage({ action: 'CheckChannelStatusReponse', stream_status: data.stream_status.status, onair: data.stream_status.onair, connected: data.stream_status.connected });
}
function join_publisher_channel(data) {
var data_array = {};
data_array.type = 'join_publisher_channel';
if (typeof data.api_key !== 'undefined') { data_array.api_key = data.api_key; }
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data_array.publisher_channel = data.publisher_channel;
data_array.username = data.username;
data_array.subscriber_group = data.subscriber_group;
data_array.display_name = data.display_name;
data_array.single_sign_on = data.single_sign_on;
data_array.remote_ip = data.remote_ip;
data_array.http_referrer = data.http_referrer;
data_array.current_page = data.current_page;
data_array.php_session_id = data.php_session_id;
data_array.from_react = data.from_react;
}
var msg_string = JSON.stringify(data_array);
if (socket.readyState == 1) {
socket.send(msg_string); }
postMessage({action: 'PublisherChannelJoined' });
}
function session_static_info(msg) {
set_static_session_info(msg.data);
start_log();
}
function connect_to_distributor(msg) {
publisher_channel = msg.data.publisher_channel;
remote_ip = msg.data.remote_ip;
socket = new WebSocket("wss://ws.livesquawk.com/ws"+distributor_server);
socket.onopen = function(event) { request_server_assignment(); };
socket.onmessage = function(event) {
var msg_string = event.data.toString();
var data = JSON.parse(msg_string);
switch(data.type) {
case 'server_assignment_response': server_assignment_response(data); break;
}
};
}
function session_info_interval() {
postMessage({action: 'RequestSessionInfo' });
logging_interval = setTimeout(session_info_interval,logging_interval_time);
}
function server_assignment_response(data) {
assigned_server = data.selected_server;
socket.close();
connect_to_assigned_server();
}
function request_server_assignment() {
var data_array = {};
data_array.type = 'request_server_assignment';
var msg_string = JSON.stringify(data_array);
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socket = new WebSocket("wss://ws.livesquawk.com/ws"+assigned_server);
socket.onopen = function(event) {
postMessage({ action: 'VisibleConsole',console_string: "Connected to server "+assigned_server });
console.log("Connected to server "+assigned_server);
postMessage({ action: 'ConnectedToAssigned' });
connected_to_assigned = true;
if (playing) {
postMessage({ action: 'RejoinPlayerChannel' });
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socket.onmessage = function(event) {
var msg_string = event.data.toString();
var data = JSON.parse(msg_string);
if (data.type != 'server_ping') { /* console.log(data.type); */ }
switch(data.type) {
case 'reconnect': postMessage({ action: 'VisibleConsole',console_string: "Reconnected" }); break;
case 'reload': postMessage({ action: 'Reload' }); break;
case 'start_log_response': start_log_response(data); break;
case 'application_refresh_start': application_refresh_start(data); break;
case 'application_refresh_stop': application_refresh_stop(data); break;
case 'player_log_request':
case 'check_channel_status_response': check_channel_status_response(data); break;
case 'PlayerLogRequest':
case 'new_tweet':
case 'new_latest_news':
case 'delete_report':
case 'add_report':
case 'add_ref_doc':
case 'calendar_change':
case 'calendar_insert':
case 'calendar_delete':
case 'new_note':
case 'AppStart':
case 'AppStop':
case 'BroadcasterStarted':
case 'BroadcasterStopped':
case 'added_cme_report':
case 'updated_cme_report':
case 'added_cme_commentary':
case 'updated_cme_commentary':
case 'server_assignment_response':
case 'initial_messages':
case 'message_categories':
case 'more_messages':
case 'matched_messages':
pass_straight_to_post_message(data);
break;
case 'output':
case 'server_ping':
case 'reconnect':
case 'disconnect':
break;
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socket.onerror = function(event) {
postMessage({ action: 'VisibleConsole',console_string: "LS Socket Error" + event.type });
console.log(event);
postMessage({ action: 'LSSocketConnectionError' });
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socket.onclose = function(event) {
console.log('Socket is closed. Reconnect will be attempted in 1 second.', event.reason);
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reconnection_delay = reconnection_delay*reconnectionDelayGrowFactor;
connected_to_assigned = false;
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function close_socket() {
clearTimeout(socket_close_timeout);
socket_close_timeout = null;
socket.onclose = function(event) {};
socket.onmessage = function(event) {};
socket.onerror = function(event) {};
socket.close(1000);
console.log('Socket Closed');
}
function pass_straight_to_post_message(data) {
data.action = data.type;
postMessage(data);
}
function join_player_channel(data) {
var data_array = {};
data_array.type = 'join_player_channel';
data_array.player_channel = data.player_channel;
data_array.remote_ip = data.remote_ip;
data_array.username = data.username;
data_array.app_name = data.app_name;
data_array.onair_status = data.onair_status;
data_array.http_referrer = data.http_referrer;
data_array.current_page = data.current_page;
data_array.php_session_id = data.php_session_id;
var msg_string = JSON.stringify(data_array);
if (socket.readyState == 1) { socket.send(msg_string); }
postMessage({action: 'PlayerChannelJoined' });
playing = true;
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function start_log_response(data) {
session_info.session_id = data.log_record_id;
session_info_interval();
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function application_refresh_start(data) {
if (data.app_name == session_info.application_name) { postMessage({action: 'ApplicationRefreshStart' }); }
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function application_refresh_stop(data) {
if (data.app_name == session_info.application_name) { postMessage({action: 'ApplicationRefreshStop' }); }
}
function set_static_session_info(data) {
session_info.browser_codename = data.browser_codename;
session_info.browser_name = data.browser_name;
session_info.user_agent = data.user_agent;
session_info.browser_version = data.browser_version;
session_info.cookies_enabled = data.cookies_enabled;
session_info.platform = data.platform;
session_info.player_version = data.player_version;
session_info.stream = data.stream;
session_info.connection_protocol = data.protocol;
session_info.delay_target = data.delay_target;
session_info.session_email = data.session_email;
session_info.remote_ip = data.remote_ip;
session_info.php_session_id = data.php_session_id;
session_info.application_name = data.application_name;
session_info.http_referrer = data.http_referrer;
}
function start_log() {
var session_start_date = new Date();
session_start_time = session_start_date.getTime();
var months = ['Jan','Feb','Mar','Apr','May','Jun','Jul','Aug','Sep','Oct','Nov','Dec'];
var session_start_date_string = session_start_date.getDate() + " " + months[session_start_date.getMonth()] + " " + session_start_date.getFullYear();
var data_array = {};
data_array.type = 'webrtc_start_log';
data_array.remote_ip = session_info.remote_ip;
data_array.username = session_info.session_email;
data_array.php_session_id = session_info.php_session_id;
data_array.webrtc_protocol = '';
data_array.session_start_time = (session_start_time/1000).toFixed(0);
data_array.stream_name = session_info.stream;
data_array.session_start_date = session_start_date_string;
var msg_string = JSON.stringify(data_array);
if (socket.readyState == 1) { socket.send(msg_string); }
}
function update_session_info(data) {
var data_array = {};
var msg_string = '';
var current_date = new Date();
var current_time = current_date.getTime();
session_info.protocol = data.protocol;
session_info.curr_delay = (data.effective_latency / 1000).toFixed(2);
session_info.session_length = current_time - session_start_time;
session_info.ping_time = data.ping_time;
session_info.jitter = data.jitter;
session_info.packet_loss = data.packet_loss;
session_info.effective_latency = data.effective_latency;
session_info.mean_opinion_score = data.mean_opinion_score;
session_info.restarts = data.restarts;
if (socket_emits == 0) {
data_array = {};
data_array.type = 'webrtc_log_data_full';
data_array.connection_protocol = session_info.protocol;
data_array.threshold = 0;
data_array.curr_delay = session_info.curr_delay;
data_array.session_length = session_info.session_length;
data_array.date = current_time;
data_array.browser_codename = session_info.browser_codename;
data_array.browser_name = session_info.browser_name;
data_array.user_agent = session_info.user_agent;
data_array.browser_version = session_info.browser_version;
data_array.cookies_enabled = session_info.cookies_enabled;
data_array.platform = session_info.platform;
data_array.player_version = session_info.player_version;
data_array.stream = session_info.stream;
data_array.restarts = session_info.restarts;
data_array.delay_target = 0;
data_array.op_sys = '';
data_array.flash_version = '';
data_array.remote_ip = session_info.remote_ip;
data_array.http_referrer = session_info.http_referrer;
data_array.php_session_id = session_info.php_session_id;
data_array.user_email = session_info.session_email;
data_array.webrtc_protocol = session_info.protocol;
data_array.ping_time = session_info.ping_time;
data_array.jitter = session_info.jitter;
data_array.packet_loss = session_info.packet_loss;
data_array.effective_latency = session_info.effective_latency;
data_array.mean_opinion_score = session_info.mean_opinion_score;
data_array.session_id = session_info.session_id;
msg_string = JSON.stringify(data_array);
if (socket.readyState == 1) { socket.send(msg_string); }
}
else {
data_array = {};
data_array.type = 'webrtc_log_data';
data_array.session_id = session_info.session_id;
data_array.php_session_id = session_info.php_session_id;
data_array.connection_protocol = session_info.protocol;
data_array.restarts = session_info.restarts;
data_array.threshold = 0;
data_array.curr_delay = session_info.curr_delay;
data_array.session_length = session_info.session_length;
data_array.date = current_time;
data_array.webrtc_protocol = session_info.protocol;
data_array.ping_time = session_info.ping_time;
data_array.jitter = session_info.jitter;
data_array.packet_loss = session_info.packet_loss;
data_array.effective_latency = session_info.effective_latency;
data_array.mean_opinion_score = session_info.mean_opinion_score;
data_array.stream = session_info.stream;
msg_string = JSON.stringify(data_array);
if (socket.readyState == 1) { socket.send(msg_string); }
}
socket_emits++;
if (socket_emits == 100) { socket_emits = 0; }
}
- Lagarde: All options open
- Staff raises inflation, growth forecasts
- Uncertainty unchecked
By Eric Culp
European Editor, LiveSquawk News
@eculp.bsky.social
@EricCulpLS
18 December 2025 | 15:30 GMT
FRANKFURT – Officials held key interest rates in the Eurozone at levels set in June once again on Thursday, with main measures of economic health in the currency area forecast to support the current path for quite some time.
The European Central Bank decided to leave rates as is for a fourth straight meeting, as anticipated by economists, keeping its benchmark discount rate at 2% and thus staying the course for nearly six months. A continued hands-off approach is likely, according to most economists – some analysts said current rates could survive through all of next year, with a number predicting the next move will be an increase in interest rates sometime in 2027.
ECB President Christine Lagarde refused to commit to the direction of the bank’s next move, noting that all options remain on the table. Officials were unanimous in their decision to leave interest rates as is this month, she said, adding that neither a hike nor a cut was discussed.
“We reconfirmed that we are in a good place, which does not mean we are static,” she explained. The problem with sharing thoughts about the next step? Uncertainty.
Lagarde pointed to a number of geopolitical issues that could affect the global economy and thus ECB policy, including shifts in supply chain functionality, trade policy, and Russia’s invasion of Ukraine, with the latter in sharp focus as European leaders in Brussels tried to decide whether frozen Russian assets could be used to support Kyiv. “We simply cannot offer forward guidance,” Lagarde said.
The latest ECB staff forecasts showed higher estimates for both inflation and GDP growth in the years ahead, revisions many analysts had anticipated. The bank said headline annual inflation was expected to average 1.9% in 2026, up from its 1.7% estimate in September, but still below the ECB's target of 2.0% over the medium term. The outlook for 2027 was cut a tenth from September to 1.8%, and the ECB’s initial projection for 2028 was in-line with its mid-term goal.
For core inflation, which excludes energy and food, staff projected 2.2% in 2026, which was up from the previous forecast of 1.9%. The latest report also raised the 2027 outlook a tenth to 1.9% and offered a preliminary number of 2.0% for 2028. “Inflation has been revised up for 2026, mainly because staff now expect services inflation to decline more slowly,” the bank said.
The outlook for the economy has improved, the ECB noted. “Economic growth is expected to be stronger than in the September projections, driven especially by domestic demand.” GDP expansion has been revised up to 1.2% in 2026 – a number forecast by the OECD and others – from 1.0%, and to 1.4% in 2027 from 1.3%. The economy is expected to grow 1.4% in 2028, the ECB added.
Lagarde noted that Germany’s plans to spend up to EUR 1 tn or more on its military and infrastructure are likely to support the Eurozone economy as a whole.
In a note, Nordea said: “We remain happy with our current baseline forecast of unchanged rates until the second half of 2027, where we see two 25bp rate hikes from the ECB. The risks of further rate cuts has receded further, though the chance of another rate cut has not vanished altogether.
“The timing of any rate hikes obviously remains very uncertain at this point, as economic development can surprise in many ways next year, but for now it looks like 2026 will be too early for the ECB to seriously consider rate hikes.”
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