Skip to main content

Strong GDP & inflation not enough to prevent 50bp cut

The stronger-than-expected euro-zone GDP and inflation data released this week, as well as some comments by ECB policymakers, poured some cold water on expectations that the ECB might accelerate the pace of easing. However, we think that, by the time of the December meeting, renewed economic weakness and well-behaved inflation will convince the ECB to cut the deposit rate by 50bp. Next week, we expect the Riksbank to cut its policy rate by 25bp, to 3.0%, and Norges Bank to keep its own policy rate at 4.5%.

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


Get access