- Prior decision
- Deposit facility rate: 3.25% (expected: 3.25%)
- Prior: 3.50%
- Main refinancing rate: 3.40% (expected: 3.40%)
- Prior: 3.65%
- Marginal lending facility: 3.65%
- Prior: 3.90%
- Disinflation is progressing well
- Recent economic data shows unexpected downturns
- Inflation may rise soon but is expected to decrease to target next year
- The ECB will remain data-dependent in its rate decisions
- Full statement
Aside from the rate cut, the ECB’s communication remains unchanged. They noted recent economic surprises as their reasoning for acting in consecutive months.
Traders expect another cut in December, with a total of ~122 bps in cuts by June next year, averaging a 25 bps cut at each meeting.
EUR/USD is stable around 1.0865, showing little change post-announcement. Now, it’s up to Lagarde for further guidance.