Express
Survey: ECB to Implement Final Rate Cut in December
Summary: According to sources, a survey reported by Xinhua shows that European Central Bank officials will wait until December to implement the next rate cut, likely the final step in this round of cuts. Economists have pushed back their expectations for the next rate cut by three months compared to the July survey. They believe that ...
According to sources, a survey reported by Xinhua shows that European Central Bank officials will wait until December to implement the next rate cut, likely the final step in this round of cuts. Economists have pushed back their expectations for the next rate cut by three months compared to the July survey. They believe that by then, the deposit rate will be lowered to 1.75% and maintained at that level for 9 to 10 months, after which the ECB will be forced to reverse its policy direction as demand picks up. Waiting until the final decision in 2025 will give ECB policymakers more time to assess the impact of the trade turmoil sparked by US President Trump. By December, policymakers will have data on the third quarter economic performance, which will reflect the economy's potential momentum more clearly after the distortion caused by companies rushing to act before the US imposed tariffs fades. The new forecast report will also give them their first look at growth and inflation trends for 2028.
