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MNI SOURCES: September Rate Cut In Sight For ECB

(MNI) London

ECB sources speak to MNI about the outlook for monetary policy.

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The European Central Bank remains on course for a September rate cut, barring data surprises, Eurosystem sources told MNI, playing down the immediate significance of higher inflation projections and emphasising that prices are still seen settling around the current price target of 2% by the second half of 2025.

Upward inflation revisions in June’s projection round do not much shift the outlook from March, with the overall trend more important than whether the target is hit one quarter sooner or later, sources said, speaking after the ECB reduced its deposit rate by 25 basis points to 3.75% on Thursday, its first cut since 2019.

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The European Central Bank remains on course for a September rate cut, barring data surprises, Eurosystem sources told MNI, playing down the immediate significance of higher inflation projections and emphasising that prices are still seen settling around the current price target of 2% by the second half of 2025.

Upward inflation revisions in June’s projection round do not much shift the outlook from March, with the overall trend more important than whether the target is hit one quarter sooner or later, sources said, speaking after the ECB reduced its deposit rate by 25 basis points to 3.75% on Thursday, its first cut since 2019.

Keep reading...Show less