Following today’s decision to cut interest rates by 50bp to 3.25%, President Trichet’s comments confirmed that the ECB is not about to slash rates as aggressively as the Bank of England. Nonetheless, with the ECB’s earlier inflation worries paling into insignificance against a backdrop of sharply weakening activity, we expect interest rates to fall to a record low of 1.5% next year.
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