Report: The European Central Bank is unlikely to commit to rate cuts in advance

ChainCatcher news, Berenberg's chief economist Felix Schmidt said in a report that ECB President Lagarde will not commit to a rate cut at Thursday's meeting after the summer break, but she is also unlikely to outright reject a rate cut. The ECB wants to gather more data and keep all options open.

Berenberg continues to expect the ECB to cut rates by 25 basis points in September, after which it will pause rate cuts until the first quarter of 2025, as base effects may temporarily push inflation higher by the end of 2024. Over the next year, Berenberg expects two more rate cuts, each by 25 basis points; by mid-2025, the deposit rate will be reduced to 3%. (Jin Shi)