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ECB Seen Cutting Rates in September as Draghi Reloads Stimulus

  • Survey shows ECB signaling cut in July and acting in September
  • Analysts are largely split on whether QE will be resumed soon
Bloomberg business news
Can the Fed Learn Anything From ECB's Mario Draghi?

The European Central Bank will flag next month that it’s ready to reduce interest rates and then deliver a cut in September as policy makers step up their efforts to revive the euro-zone economy, economists predict.

The push for additional support was set in motion by President Mario Draghi last week when he said more stimulus will be needed if the outlook doesn’t improve. He said prolonged uncertainty, largely driven by trade tensions, means the downside risks to growth and inflation have now materialized.