Investment bank: The ECB's pace of rate cuts may be slower than market expectations and may be cut quarterly

Strategists at Barclays and Danske Bank said the ECB may cut rates more slowly than the market expects. The strategists said the ECB may cut rates on a quarterly basis rather than at every meeting from December to June. Danske Bank said the ECB will target sticky inflation, while Barclays believes the ECB may choose a lower final rate to achieve through a more stable period of easing. "The market may once again take more seriously the possibility that the ECB will only choose quarterly rate cuts next year," wrote Rohan Khanna, head of euro rates strategy at Barclays. Piet Christiansen, chief strategist at Danske Bank, pointed to rising domestic inflationary pressures caused by high wages as a reason why policymakers cut rates only once a quarter. The bank expects the ECB to cut interest rates by 25 basis points each quarter until September next year. (Jinshi)