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Commenting on the European Central Bank’s (ECB) October meeting accounts, “the assessment of the economy and discussions about the risks surrounding the ECB’s expectations made the accounts of the October policy meeting a bit of a dovish read,” said Rabobank analysts.

Key quotes

“In particular the discussion about underlying inflation dynamics and the factors driving the protracted sluggishness in inflation suggest the Council is becoming less certain whether it will be able to reach its inflation aim.”

“In the near-term the ECB’s call for increased fiscal stimulus, growing concerns about side effects of policy measures, and the ECB’s strategic review may slow down decision making.”

“But, pressures to act will likely increase over the course of 2020. We maintain our call of three more rate cuts starting in March 2020, but acknowledge risks that the ECB may hold until later in the year.”