TD Securities: The ECB is expected to cut interest rates again in October, and the pace of rate cuts will accelerate thereafter

James Rossiter, head of global macro strategy at TD Securities, and others said the ECB faces a tricky decision in October as service sector inflation remains high and the job market is solid, but recent data show inflation is below target. However, they said in a report that TD expects the ECB to cut interest rates again in October and the pace of rate cuts will accelerate thereafter. They said: "We now expect the ECB to cut interest rates by 25 basis points from October to March next year, bringing the deposit rate to the 2.50% floor, six months earlier than previously expected." (Jinshi)