ECB

On October 24th, ECB Governing Council Member Wunsch stated that it's too early to talk about a 50-basis-point interest rate cut in December. Meanwhile, Governing Council Members Kazaks and Muller argued for maintaining a gradual path of interest rate reductions, and Nagel suggested that the ECB should not rush into cutting rates.

On October 22, ECB officials Olli Rehn and Francois Villeroy de Galhau said that Europe's weak economic growth could further reduce inflation. ECB President Christine Lagarde indicated that the direction of the ECB's rate cuts is clear, and the central bank will prudently handle the magnitude and pace of rate cuts based on actual conditions.

Christine Lagarde, president of the European Central Bank President (ECB) said at a press conference on Thursday that economic activity has been somewhat weaker than expected. The latest data points to weaker growth and downside risks to growth. The disinflation process is well on track, but wage pressures remain strong. Inflation is expected to rise in the coming months before falling back to target levels next year.

The European Central Bank Governing Council today decided to lower the three key interest rates by 25 basis points. Accordingly, the interest rates on the deposit facility, the main refinancing operations and the marginal lending facility will be decreased to 3.25%, 3.40% and 3.65% respectively. Inflation is expected to rise in the coming months, before declining to target in the course of next year.

On Thursday, the European Central Bank released the September meeting minutes. Owing to a weaker economy, easing prices, and lower wage pressures, further rate cuts are inevitable. It was mentioned that a gradual and cautious approach currently seemed appropriate because it was not fully certain that the inflation problem was solved.

The European Central Bank (ECB) announced on Thursday a 25 basis point cut in the deposit facility rate to 3.5%. It cut the interest rates on the main refinancing operations and the marginal lending facility by 60 basis points to 3.65% and 3.9% respectively. The ECB said lower inflation and economic growth allowed it to ease its tightening slightly. However, there was no clear hint of further rate cuts in October.

European Central Bank (ECB) President Christine Lagarde said at a news conference on Thursday that inflation is expected to pick up in the second half of the year, and wages are still rising at a high rate. A further modest easing of monetary policy tightening would be appropriate. Decisions will be made on a meeting-by-meeting basis in the future, with no commitment to any particular rate path.

On Friday, August 30, Isabel Schnabel, Member of the Executive Board of the ECB said that while data largely confirmed the ECB's baseline outlook and boosted confidence that the price target will be achieved by the end of 2025, services inflation remains high and could hamper a pullback in headline inflation.

The ECB should be careful and must not lower policy rates too quickly, given that inflation has yet to return steadily to 2%, ECB Governing Council member Nagel said on Thursday.