Sources say European Central Bank officials see December as the next opportunity for a rate cut.
Jinse Finance reported that, according to three sources, European Central Bank policymakers believe that the December meeting is the most realistic timeframe to discuss whether another rate cut is needed to cushion the impact of US tariffs on the eurozone economy. The European Central Bank kept interest rates unchanged on Thursday and maintained an optimistic outlook on economic growth and inflation, dampening expectations for further rate cuts. However, sources from the ECB Governing Council said that the debate on rate cuts is not over, but policymakers may not have enough information before the next meeting on October 29 to make an appropriate assessment. This means that, considering the upcoming inflation and economic growth data as well as the next batch of forecasts, the December 18 meeting is seen as a more likely date to discuss lowering borrowing costs.
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