HSBC: The European Central Bank may hint at an open attitude towards interest rate cuts in 2025 this month

ChainCatcher news, HSBC economists Balboni and Wells suggest that the European Central Bank may abandon its more policy-restrictive stance at the next meeting, signaling a more open attitude towards future rate cuts. This would lay the groundwork for further rate cuts next year; however, given that policymakers have recently called for a gradual approach, a significant rate cut of 50 basis points in December seems unlikely. Nevertheless, if economic data continues to disappoint, or if inflation drops more rapidly in early 2025, it could indicate that the European Central Bank will accelerate rate cuts.