ECB

The ECB adopted a relatively dovish stance today while implementing the widely expected rate cut, signaling the possibility of further reductions without committing to a specific terminal level. This approach aligns with the continued progress in disinflation and the subdued momentum of the Eurozone economy.

In this publication you will find, on a weekly basis, our selection of the most relevant news regarding financial regulation.

The ECB cut its key interest rates by 25 basis points, as expected, following signals given by Lagarde in September in her speech at the European Parliament, due to lower inflation and weak activity data. We expect another 25 basis point cut in December.

The European Central Bank (ECB) can take satisfaction from recent inflation data from the eurozone. Much of the downside surprise has been due to the drop in oil, but there is also some progress in services prices. Coupled with economic weakness, the scenario is a further interest rate cut.