European Central Bank (ECB) President Christine Lagarde stated at the International Monetary Fund (IMF) Annual Meetings that the global economy has shown surprising resilience in the face of high uncertainty, but growth risks remain tilted to the downside, and inflation risks are tilted to the upside. The Eurozone economy has also shown resilience so far, with the ECB's September staff projections forecasting 0.9% economic growth in 2026.

She noted that Eurozone headline inflation rose to 3.8% in September, and core inflation rose to 2.5%. Higher energy prices are expected to keep headline inflation well above target in the first half of 2027, and the inflation outlook risks are tilted to the upside. The ECB's Governing Council decided in September to raise key interest rates by 25 basis points and will continue to comprehensively assess future policy based on data regarding the inflation outlook, underlying inflation dynamics, and the strength of monetary policy transmission.