ECB sources via Bloomberg reports:
- Given the downside risk in economic growth in the EU, ECB officials are keeping the door open for a cut at the October meeting
Reuters is now reporting:
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Policymakers see an interest rate cut in October as unlikely, unless there’s a major downturn in growth
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The ECB cut borrowing costs on Thursday, but a further cut in October is not expected
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Sources say:
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Not enough new information will be available by October 17 to warrant a rate cut
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Policymakers prefer to wait for new projections in December before making another move
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A major negative surprise on growth would be needed to prompt another rate cut
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The ECB’s Thursday meeting was unusually short and unanimous, with a decision to cut rates already made.
The Bloomberg report was a bit more optimistic for an October cut (at least the doo was open). The Reuters sources report, is saying a cut is more “unlikely”.
The EURUSD is moved above the 100 hour MA at 1.10387.
This article was written by Greg Michalowski at www.forexlive.com. Source