ECB anticipated to chop charges by 25 bps subsequent week – ballot

• 73 of 75 economists predict a 25 bps fee reduce for December
• The remaining 2 economists predict a 50 bps fee reduce as a substitute
• 51 of 67 economists anticipated deposit fee to be at 2% or decrease by the top of 2025

For some context, the present deposit fee is at three.25%. So, to count on charges of a minimum of 2% or decrease implies that majority of the economists polled predict the ECB to chop charges by a minimum of 4 occasions subsequent yr. Searching to June subsequent yr, markets are pricing in ~134 bps of fee cuts already (together with the upcoming December determination).

From the ballot:

This text was written by Justin Low at www.ubaidahsan.com.



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