Traders believe the ECB’s rate-cut floodgates have been opened

18 October 2024
Traders increased bets on faster European Central Bank (ECB) rate cuts after the ECB’s second consecutive cut, reducing the deposit rate by 25 basis points to 3.25%. The move, driven by worsening economic conditions and easing inflation, marked the first back-to-back cuts since 2011. While ECB chief Christine Lagarde stressed data-dependence, traders saw little resistance to market expectations, pricing in a possible 50 bps cut in December. This pushed the euro down further, with markets now speculating on the size of the next cut. To find out more details please visit : https://www.reuters.com/ |