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MNI SOURCES: ECB Heads For 25BP Cut; Risks From Trump, Germany

MNI speaks to ECB sources.

MNI (LONDON) - A 25-basis-point cut by the European Central Bank next month looks almost assured after a push by some officials for 50 failed to gain momentum, with the ECB likely also to retain its meeting-by-meeting approach as it weighs significant risks from U.S. trade policy and a sickly German economy, Eurosystem officials told MNI.

Barring surprises, conditions in the euro area indicate the need for a third consecutive rate cut to continue easing monetary restriction, sources said, with the ECB likely to continue cutting in this cycle at least until the top of the range of estimates of the neutral level from 2-2.5%.

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MNI (LONDON) - A 25-basis-point cut by the European Central Bank next month looks almost assured after a push by some officials for 50 failed to gain momentum, with the ECB likely also to retain its meeting-by-meeting approach as it weighs significant risks from U.S. trade policy and a sickly German economy, Eurosystem officials told MNI.

Barring surprises, conditions in the euro area indicate the need for a third consecutive rate cut to continue easing monetary restriction, sources said, with the ECB likely to continue cutting in this cycle at least until the top of the range of estimates of the neutral level from 2-2.5%.

Keep reading...Show less