The ECB's December meeting appears to be a possible time for a move away from the current flexible stance and to give a stronger commitment to future easing. By then, there will be a variety of key data points that will provide greater clarity on underlying inflation. Our base case is that the ECB will continue to cut rates at every meeting before returning to a quarterly pace of rate cuts at next year's projection meetings as interest rates move closer to the upper estimates of "neutral" and consumer demand improves. - MUFG
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