ECB’s Rehn: The scale is tipping towards a rate cut in October

  • Slowing inflation means more reasons to justify October rate cut in my view
  • Recent weakening in growth outlook also tips the scale in the direction of October
  • But should closely monitor data and perform comprehensive analysis before deciding

This is the first sign that any ECB policymaker is explicitly making a call for October. It shows how central banks have a pension for giving in to markets at times. And also how quickly the narrative can shift from one meeting to another. 10-year German bond yields are now down 6 bps to 2.07% – its lowest since January.

This article was written by Justin Low at www.forexlive.com. Source