The European Central Bank is widely expected to deliver a quarter-point rate cut on Thursday, a move that would mark its second reduction to the deposit rate this year following a landmark cut in June.
Some of the main drivers behind an expected rate cut include sluggish economic growth across the euro zone and cooling inflation, which fell back toward the central bank’s 2% target in August.
For many market participants, the big question is not whether the ECB will cut rates on Thursday — but whether it will provide any clues as to what comes next.
Economists at Berenberg Bank expect the ECB to pause when policymakers meet again on Oct. 17, as it had done in July, before reducing rates by another quarter-point on Dec. 12.
The rate decision is expected at 1:15 p.m. London time (8:15 a.m. ET), with a press conference scheduled to take place from 1:45 p.m. London time.
The ECB’s meeting comes just days before the Federal Reserve appears poised to start its own rate-cutting cycle.
European Central Bank poised to resume its rate-cutting cycle: Live updates
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