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/ |
