A 25bp interest rate cut looks nailed on next week, taking the deposit rate down to 3.25%. Christine Lagarde is likely to reiterate that policymakers expect to reduce rates further but avoid committing to a specific path of cuts. We expect the Bank to cut by 25bp at each meeting until the deposit rate hits 2.5% in March.
We will discuss the outlook for the euro-zone economy and ECB policy in a 20-minute online briefing shortly after next week’s press conference, at 3pm BST. You can register here.
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