Recent ECB communications have maintained a stubbornly hawkish tone, despite extreme tension in financial markets and growing evidence of weak activity. This month’s press statement is unlikely to hint at near-term interest rate cuts and will probably suggest that the first move is some months away. We still expect rates to fall to 3% next year as inflation worries ease. But there is a growing risk that the Bank does too little late.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services