The European Central Bank will cut deposit rates in September and will begin telegraphing the move from this month, according to economists in a Reuters poll who do not see sudden revival in Eurozone’s economy.
The central is expected to cut its deposit rate by 10 basis points to an all-time low of -0.50% in September. Two-thirds of economists said the ECB would use the July meeting to change its forward guidance toward easing.
Key point (Source: Reuters)
While a majority of economists do not expect the ECB to relaunch asset purchases — known as quantitative easing, or QE — this year, nearly 40% of the respondents expected it to do so, up from about 15% last month.