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Barclays: European Central Bank may choose to cut interest rates in December
Summary: According to sources, Barclays currently believes that the European Central Bank may choose to cut interest rates once in December, rather than the previously predicted September rate cut. The bank's economist Mariano Sina said this revision takes into account the weakness in economic activity in the second half of the year, which is attributed to ...
According to sources, Barclays currently believes that the European Central Bank may choose to cut interest rates once in December, rather than the previously predicted September rate cut. The bank's economist Mariano Sina said this revision takes into account the weakness in economic activity in the second half of the year, which is attributed to the continued drag of trade policies and the impact of earlier imports by the United States. Barclays expects that by December, signals regarding trade headwinds will be clearer, concerns about supply chain disruptions affecting inflation will decrease. Additionally, confidence that the 2026 fiscal plans will not reignite inflationary pressures may strengthen, supporting a 25 basis point rate cut. Barclays forecasts that by 2026, the European Central Bank's terminal deposit rate will remain at 1.75%.
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