LONDON (Reuters) – Deutsche Bank announced on Tuesday that it anticipated a further cut in key rates from the European Central Bank (ECB) in October, due to the greater than expected decline in inflation in September in several euro zone countries.
“Following an even larger fall in HICP inflation in September than we expected, we are bringing forward the next ECB rate cut by 25 bp (basis points) from December to October,” write the Deutsche Bank analysts, in a note edited by economist Mark Wall.
These analysts also believe that a 50 basis point rate cut in December could be the subject of a heated debate within the ECB’s monetary policy committee if recent downward trends in growth and inflation continues.
Euro zone inflation data will be released at 09:00 GMT and is expected, according to Reuters consensus, to show a slowdown in year-on-year price rises of 1.8% in September, compared to a medium-term target of 2% set by the ECB.
(Written by Harry Robertson; French version Claude Chendjou, edited by Blandine Hénault)
