08:59 AM EDT, 10/28/2025 (MT Newswires) -- Morgan Stanley said it expects the European Central Bank to remain on hold at Thursday's policy meeting, and to stick to its "good place" narrative.

The communication should remain unchanged, stressing data dependency and a meeting-by-meeting approach, noted the bank.

Morgan Stanley sees on Friday eurozone headline HICP at 2.1% year over year in October from 2.2%, with core only 2bps down but rounding at 2.3% year over year from 2.4$. Softer headline comes from energy (-0.9% year over year from -0.4%) and food (2.7% year over year from 3.0%) inflation.