Central Banks
ECB to Go Slow on Rate Cuts as Elections Feed Risks, Poll Shows
- Economists predict next reduction will arrive in September
- US presidential vote now deemed top risk to euro-zone economy
The headquarters of the European Central Bank (ECB) in Frankfurt.
Photographer: Alex Kraus/Bloomberg
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The European Central Bank will take a measured approach to lowering interest rates as political upheaval opens up a litany of risks to inflation’s return to 2%, according to a Bloomberg survey of analysts.
After June’s initial quarter-point reduction, respondents expect officials to take a timeout when they meet next week. Cuts are expected to resume again in September, coming once a quarter until the deposit rate reaches 2.5% a year later.