"Next move from the ECB will be up, rather than down"

5 February 2026

Commenting on today's interest rate decision from the European Central Bank (ECB), Irene Lauro, Senior Economist – Europe and Climate at Schroders, said:

"Eurozone growth continues to outperform expectations, with domestic demand gaining momentum as lower interest rates and fiscal support filter through the economy.

"Yes headline inflation has dipped below target, but the ECB will largely look through this given the volatility in energy prices. Instead, policymakers will remain focused on services inflation, which is still running uncomfortably high and set to be exacerbated by the expected end of the slowdown in wage growth this year.

"Today’s decision has confirmed our view that the next move from the ECB will be up, rather than down."

Irene Lauro

Media contact

Wim Heirbaut

Press and media relations, BeFirm

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Schroders plc

Schroders is a global investment manager which provides active asset management, wealth management and investment solutions, with £776.6 billion (€906.6 billion; $1064.2 billion) of assets under management at 30 June 2025. As a UK listed FTSE100 company, Schroders has a market capitalisation of circa £6 billion and over 5,800 employees across 38 locations. Established in 1804, Schroders remains true to its roots as a family-founded business. The Principal Shareholder Group continues to be a significant shareholder, holding approximately 44% of the issued share capital.

Schroders' success can be attributed to its diversified business model, spanning different asset classes, client types and geographies. The company offers innovative products and solutions through four core business divisions: Public Markets, Solutions, Wealth Management, and Schroders Capital, which focuses on private markets, including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate.

Schroders aims to provide excellent investment performance to clients through active management. This means directing capital towards resilient businesses with sustainable business models, consistently with the investment goals of its clients. Schroders serves a diverse client base that includes pension schemes, insurance companies, sovereign wealth funds, endowments, foundations, high net worth individuals, family offices, as well as end clients through partnerships with distributors, financial advisers, and online platforms.

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