Eco Week Ahead
World Rate Paths Set to Diverge With ECB’s First Cut
- Decision will widen difference in borrowing costs with US
- US payrolls, Bank of Canada rate decision also due this week
The European Central Bank (ECB) headquarters in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank could open the door to a weaker euro on Thursday as its first interest-rate cut of the cycle puts the region on a divergent policy path from the US.
With a quarter-point reduction all but certain, officials will finally embrace a widening in the difference between borrowing costs on either side of the Atlantic, the implications of which they’ve discussed for months.