Economic news

Deutsche Bank says now expects a faster ECB rate-cutting cycle

2024.09.26 04:01

LONDON (Reuters) – Deutsche Bank said on Thursday it now anticipated a faster European Central Bank rate-cutting cycle, with back-to-back quarter-point rate cuts starting from December.

The bank said that it had previously expected the central bank to follow a gradual easing path with quarter point cuts every quarter until a terminal rate of 2-2.5% was reached around end-2025.

“We are moving to a faster normalization call, with the ECB to reach the same terminal rate of 2.00-2.50% six months earlier in mid-2025,” the bank said in a note.

© Reuters. FILE PHOTO: European Union flags flutter on the day European Central Bank (ECB) President Christine Lagarde speaks to reporters following the Governing Council's monetary policy meeting in Frankfurt, Germany September 12, 2024. REUTERS/Jana Rodenbusch/File photo

“We expect this more rapid easing cycle to be achieved with back-to-back 25 bp cuts from December, but we do not rule out a 50bp cut in December.”

Deutsche is the latest bank to change its ECB policy call this week following further signs of a weakening economic outlook.



Source link

Related Articles

Back to top button