ECB expected to cut rates despite reasons for pause, with 99% market expectations

From Investing.com: 2024-10-14 04:34:00

The ECB will meet on Thursday, and a 25bps rate cut is expected, despite reasons for a pause such as lack of staff projections and avoiding disappointing the markets. Market expectations are at 99% for the rate cut to happen. The recent weak eurozone data and aggressive Fed rate cut are pushing for the October move. However, pausing on Thursday could benefit the economy and potentially lead to a pre-commitment for a rate cut in December. The euro could suffer from a dovish rate cut, with the potential to test key support levels or see a significant upleg with a rate pause.



Read more at Investing.com: ECB to Cut Rates Despite Plethora of Reasons for a Pause