- ECB are expected to cut rates at today’s meeting
- Inflation expectations not picking up
- Talk at last meeting of ECB wanting the EuroOne governments to do more to boost growth
The ECB today are likely to announce a cut in the deposit rate across the Eurozone.
With poor data out of Germany of late and headwinds to global growth seemingly not alleviating, it’s likely that the Governing Council will be forced to act.
With Targeted Long Term Refinancing Operations kicking in later this month and bank profitability under the radar, the ECB are likely to be cautious here since it has already been questioned as to whether negative rates could spur another bank collapse.
Brexit is likely to remain at the forefront and with the 31st October proposed leaving date, the ECB may wish to try to ease ahead of any potential disruption.