ECB Expected To Cut Rates In October Amid Persistent Inflation

According to Odaily, TD Securities' Global Macro Strategy Head James Rossiter and his team have indicated that the European Central Bank (ECB) faces a challenging decision in October. Despite persistent inflation in the services sector and a robust job market, recent data shows inflation below the target. However, TD Securities anticipates that the ECB will proceed with another rate cut in October, followed by an accelerated pace of rate reductions. The report from TD Securities suggests that the ECB is expected to implement consecutive rate cuts of 25 basis points from October through March next year. This would bring the deposit rate down to a lower limit of 2.50%, six months earlier than previously forecasted.