Report: ECB Highly Likely to Cut Rates by 25 Basis Points Next Week
According to a report by Ulrike Kastens, an economist at German asset management firm DWS, the European Central Bank (ECB) is expected to lower its deposit rate by 25 basis points to 3.00% next Thursday, rather than opting for a larger cut of 50 basis points. While the eurozone’s economic outlook has deteriorated and inflation prospects have improved more than anticipated, these factors are not sufficient to prompt a more aggressive rate reduction.
Data from LSEG indicates that the money market currently assigns an 87% probability to a 25 basis point rate cut, compared to a 13% probability for a 50 basis point cut.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
A certain whale withdrew 17,779 AAVE from an exchange, having accumulated a total purchase of 310,617 AAVE.
The Bitcoin premium index on a certain exchange has turned positive again, currently at 0.0331%.