Eco Week Ahead

ECB Is Set to Deepen Global Easing With Rate Cut It Didn’t Expect

  • Just a month ago, reduction was almost ruled out by officials
  • Data may show China underperforming; UK inflation also due

Christine Lagarde

Photographer: Krisztian Bocsi/Bloomberg
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The European Central Bank will probably advance the global push for monetary easing in the coming week with an interest-rate cut that policymakers had all but ruled out just a month ago.

The third quarter-point reduction of this cycle is seen likely by economists to herald a longer-lasting acceleration in action by officials seeking to cushion the euro zone from the hit to growth created by an extended period of high borrowing costs, and now playing out with a lag.