Research Detail
| 2024/09/12 / Erste Group Research |
ECB cuts further As had been widely expected, the ECB Governing Council decided today to cut the deposit rate by 25 basis points (bp) to 3.50%. The ECB economists' new forecasts showed no change in the inflation forecast compared to June. However, the core inflation forecasts for 2024 and 2025 were raised slightly, due to higher than expected inflation in the service sector. When asked, Lagarde confirmed that the ECB is still keeping a close eye on services inflation. However, preliminary data such as wage growth, corporate profits and a slight increase in productivity give the ECB high confidence that services inflation will lose momentum in 2025. Confidence has therefore risen that the inflation target will be reached in the second half of 2025. In our view, a next rate cut in October remains the most likely scenario, which should be followed by a further cut in December. |
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General information
| Author | Erste Group Research |
| Date | 2024/09/12 |
| Language |  |
| Product name | Short Notes Major Markets |
| Topic in focus | Macro/ Fixed income |
| Economy in focus | Eurozone |
| Currency in focus | Euro |
| Sector in focus | - |
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