Central Banks
ECB to Cut Rates But Stay Guarded on Path Beyond
- All economists predict 25bps reduction in deposit rate to 3.5%
- Officials facing sticky domestic inflation and weaker economy
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The European Central Bank is set to lower interest rates again, but will remain tight-lipped on the pace and extent of further action with inflation not yet fully defeated.
After a first reduction in June followed by a pause in July, the deposit rate will be decreased by a quarter-point to 3.5% on Thursday, according to all 68 economists surveyed by Bloomberg. Two other rates will also be adjusted as part of a policy revamp unveiled in March, but with few immediate consequences.