ECB to lower rates in October, according to Deutsche Bank, following a decline in inflation

On Tuesday, Deutsche Bank announced that it now anticipates the European Central Bank (ECB) will reduce interest rates again in October, following a larger-than-expected drop in inflation across the eurozone in September.

"Due to a more significant decline in September's HICP inflation than we had predicted, we are moving our forecast for the next ECB rate cut of 25 basis points from December to October," stated Deutsche Bank analysts, led by chief economist Mark Wall, in a note released on Tuesday.

They also indicated that a 50-basis point cut in December is a possibility, depending on the ongoing trends of weaker growth and inflation. Eurozone-wide data is set to be published at 0900 GMT (1100 CET) and is anticipated to reveal that year-on-year inflation decreased to 1.8% in September, falling below the ECB's 2% target.

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.