Central Banks

Lagarde Signals ECB Open to October Cut But December More Likely

  • France’s Villeroy says policy loosening should continue
  • Simkus sees inflation on trajectory that suggests more cuts
WATCH: Former ECB Chief Economist Peter Praet says a bigger Fed cut next week raises the chances of an ECB move in October. Source: Bloomberg

The European Central Bank is open to considering an interest-rate cut in October if the economy suffers a major setback — though the next comprehensive set of information will only be available at the following meeting, President Christine Lagarde said.

Her remarks, less than a day after the ECB delivered its second quarter-point reduction in the deposit rate since June, offer the clearest signal yet that policymakers are leaning toward waiting until December for their next move.