Survey: ECB may implement the last rate cut of this round in December

ChainCatcher news, a survey shows that European Central Bank officials will wait until December to implement the next rate cut, which is likely to be the last step in this round of rate cuts. Compared to the July survey, economists have pushed back their expectations for the next rate cut by three months.

They believe that by then, the deposit rate will be lowered to 1.75% and will be maintained at that level for 9 to 10 months, after which, as demand rebounds, the European Central Bank will be forced to reverse its policy direction. Waiting until the last decision in 2025 to take action will give the ECB policymakers more time to assess the impact of the trade turmoil triggered by U.S. President Trump.

By December, policymakers will have the economic performance data for the third quarter, which will more clearly reflect the underlying momentum of the economy after the distortion effects caused by businesses acting in advance of U.S. tariffs at the beginning of the year have faded. The new forecast report will also provide them with their first insights into growth and inflation trends for 2028. (Jin Ten)