The European Central Bank appears poised to introduce an interest rate cut at its next policy meeting, advancing the global trend toward monetary easing as inflation continues to cool. This would be the third quarter-point reduction in this cycle should market bets prove accurate.
Bloomberg Economics weighed in on the ECB’s latest policy decision, claiming: “The ECB will lower borrowing costs by 25 basis points in October and again in December. After that we see quarterly moves as policymakers feel their way to neutral.”
A Bloomberg survey of a range of economists found that there is a broad expectation that the ECB will accelerate its policy easing as a means of bringing borrowing costs down to a level that no longer stifles the economy by the end of 2025. In China, the economy appears to be continually underperforming its target, however, in the UK, inflation appears to be slowing towards the 2% mark.