ECB Keeps Rates Unchanged, Citing 'Weak' Euro Area Economy Despite Falling Inflation

Lagarde used "weak" 9 times to describe euro area economy in opening remarks after ECB paused rate hikes
Pointed to falling manufacturing, weakening services, fading COVID reopening boost, impact of past hikes
Said inflation dropped "markedly" to 4.3% in September but cutting rates now would be "premature"
ECB held deposit rate at 4%, its first pause since summer 2022 after data showed slowing inflation
Euro weaker after decision; Goldman Sachs strategist expects rate cuts to start in Q3 2023 as hike cycle complete