The ECB is expected to lower interest rates only days before the Fed Decision The ECB is expected to lower interest rates only days before the Fed Decision The ECB is exp

The European Central Bank is set to lower interest rates by 25 basis points on Thursday, only a few days before the US Federal Reserve starts its own cycle of rate cuts.

Both this week's ECB meeting and the Federal Reserve's meeting on September 17–18 are likely to see an interest rate cut, according to traders.

Following its historic rate drop in June, the ECB unanimously decided to keep interest rates steady in July. It stated at the time that a September decrease was "wide open." After years of relentless rises, the European Central Bank's benchmark interest rate, which influences the pricing of various loans and mortgages throughout the EU, is presently at 3.75%.

Since then, the euro area's inflation rate has decreased even further. In August, headline inflation reached a three-year low of 2.2%; however, core inflation, which is driven higher by the services sector, remains higher at 2.8%.

This Thursday, the Frankfurt-based European Central Bank (ECB), which controls monetary policy for the twenty countries that make up the euro, will also release a fresh set of staff projections. No significant modification to inflation or growth data is anticipated, while some analysts anticipate a less optimistic new growth projection for the euro area than what was stated in July.

However, many are now starting to wonder what the path will look like after September.

Most experts anticipate a pause from the ECB during its October meeting in Ljubljana, Slovenia. It is possible, nevertheless, that the Bank will opt to lower rates sooner rather than later due to the inherent dangers associated with maintaining excessively high rates.

As of right now, it appears that the Governing Council of the European Central Bank is in agreement that the Bank is headed in the correct direction in terms of returning inflation to its objective of 2%.

 

(Sources: cnbc.com)

 

 

The European Central Bank is set to lower interest rates by 25 basis points on Thursday, only a few days before the US Federal Reserve starts its own cycle of rate cuts.

Both this week's ECB meeting and the Federal Reserve's meeting on September 17–18 are likely to see an interest rate cut, according to traders.

Following its historic rate drop in June, the ECB unanimously decided to keep interest rates steady in July. It stated at the time that a September decrease was "wide open." After years of relentless rises, the European Central Bank's benchmark interest rate, which influences the pricing of various loans and mortgages throughout the EU, is presently at 3.75%.

Since then, the euro area's inflation rate has decreased even further. In August, headline inflation reached a three-year low of 2.2%; however, core inflation, which is driven higher by the services sector, remains higher at 2.8%.

This Thursday, the Frankfurt-based European Central Bank (ECB), which controls monetary policy for the twenty countries that make up the euro, will also release a fresh set of staff projections. No significant modification to inflation or growth data is anticipated, while some analysts anticipate a less optimistic new growth projection for the euro area than what was stated in July.

However, many are now starting to wonder what the path will look like after September.

Most experts anticipate a pause from the ECB during its October meeting in Ljubljana, Slovenia. It is possible, nevertheless, that the Bank will opt to lower rates sooner rather than later due to the inherent dangers associated with maintaining excessively high rates.

As of right now, it appears that the Governing Council of the European Central Bank is in agreement that the Bank is headed in the correct direction in terms of returning inflation to its objective of 2%.

 

(Sources: cnbc.com)

The European Central Bank is set to lower interest rates by 25 basis points on Thursday, only a few days before the US Federal Reserve starts its own cycle of rate cuts.

Both this week's ECB meeting and the Federal Reserve's meeting on September 17–18 are likely to see an interest rate cut, according to traders.

Following its historic rate drop in June, the ECB unanimously decided to keep interest rates steady in July. It stated at the time that a September decrease was "wide open." After years of relentless rises, the European Central Bank's benchmark interest rate, which influences the pricing of various loans and mortgages throughout the EU, is presently at 3.75%.

Since then, the euro area's inflation rate has decreased even further. In August, headline inflation reached a three-year low of 2.2%; however, core inflation, which is driven higher by the services sector, remains higher at 2.8%.

This Thursday, the Frankfurt-based European Central Bank (ECB), which controls monetary policy for the twenty countries that make up the euro, will also release a fresh set of staff projections. No significant modification to inflation or growth data is anticipated, while some analysts anticipate a less optimistic new growth projection for the euro area than what was stated in July.

However, many are now starting to wonder what the path will look like after September.

Most experts anticipate a pause from the ECB during its October meeting in Ljubljana, Slovenia. It is possible, nevertheless, that the Bank will opt to lower rates sooner rather than later due to the inherent dangers associated with maintaining excessively high rates.

As of right now, it appears that the Governing Council of the European Central Bank is in agreement that the Bank is headed in the correct direction in terms of returning inflation to its objective of 2%.

 

(Sources: cnbc.com)

 

The European Central Bank is set to lower interest rates by 25 basis points on Thursday, only a few days before the US Federal Reserve starts its own cycle of rate cuts.

Both this week's ECB meeting and the Federal Reserve's meeting on September 17–18 are likely to see an interest rate cut, according to traders.

Following its historic rate drop in June, the ECB unanimously decided to keep interest rates steady in July. It stated at the time that a September decrease was "wide open." After years of relentless rises, the European Central Bank's benchmark interest rate, which influences the pricing of various loans and mortgages throughout the EU, is presently at 3.75%.

Since then, the euro area's inflation rate has decreased even further. In August, headline inflation reached a three-year low of 2.2%; however, core inflation, which is driven higher by the services sector, remains higher at 2.8%.

This Thursday, the Frankfurt-based European Central Bank (ECB), which controls monetary policy for the twenty countries that make up the euro, will also release a fresh set of staff projections. No significant modification to inflation or growth data is anticipated, while some analysts anticipate a less optimistic new growth projection for the euro area than what was stated in July.

However, many are now starting to wonder what the path will look like after September.

Most experts anticipate a pause from the ECB during its October meeting in Ljubljana, Slovenia. It is possible, nevertheless, that the Bank will opt to lower rates sooner rather than later due to the inherent dangers associated with maintaining excessively high rates.

As of right now, it appears that the Governing Council of the European Central Bank is in agreement that the Bank is headed in the correct direction in terms of returning inflation to its objective of 2%.

 

(Sources: cnbc.com)