HomeRBC predicts several ECB rate cuts over the next six months.

RBC predicts several ECB rate cuts over the next six months.

RBC analysts are looking for a long series of European Central Bank rate cuts ahead:We expect both the European Central Bank and the Bank of England to cut interest rates by 25 bps at every meeting until May 2025, contingent on domestic inflation pressures continuing to slow.The thing is, that forecast was written before Thursday's meeting. RBC did reiterate the call after the ECB cut on Thursday:ECB isn't in a rushrisks are political ... a Trump presidency could force the ECB to keep the currency weak25bps cut every meeting bringing rates to neutral in summer 2025More on the ECB here:Forexlive Americas FX news wrap: ECB cuts rates, US retail sales beat estimatesTD on the European Central Bank - no major surprise. Now pessimistic on euro.Deutsche Bank expect faster rate cuts from the European Central Bank to comeThe ECB is behind the curve and oblivious to it This article was written by Eamonn Sheridan at www.forexlive.com.

By admin

October 18, 2024

RBC analysts predict a series of interest rate cuts from the European Central Bank (ECB):

They expect both the ECB and the Bank of England to cut rates by 25 basis points at each meeting until May 2025, assuming domestic inflation continues to decrease.

This forecast was made before the ECB’s meeting on Thursday.

After the ECB’s rate cut, RBC confirmed their prediction:

The ECB is not in a hurry to adjust rates.
Political risks could affect decisions, especially with a potential Trump presidency influencing the Euro’s strength.
Continuous cuts could bring rates to neutral by summer 2025.

For more details on the ECB, check out the following: