Central Banks
Why Talk of a Half-Point ECB Rate Cut Just Won’t Go Away
- Markets focusing on key inflation gauge below 2%, weak economy
- Majority still sees quarter-point cuts, including this week
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Investors and economists can’t quite shake the idea that the European Central Bank will deliver a bigger cut in interest rates over the coming months.
Despite most officials favoring “gradual” — read quarter-point — moves, traders refuse to rule out a reduction of twice that size at one of the next three meetings.