ECB Lagarde ‘data dependence’ is a smokescreen, December rate cut ahead

The next European Central Bank monetary policy meeting is on December 12. TD are expecting another rate cut (the ECB cut by 25bp last week).

TD cites:

• ECB officials (members of the Bank’s rate setting committee, the Governing Council) have opened up the door sidely to cuts
• the data-dependent ‘one meeting at a time’ messaging is still there but anything other than a December rate cut is unlikely

Indeed, Villeroy repeated the data-dependent messaging on Saturday. Who is he kidding? The EU economy is in deep doo-doo, and he expects inflation at target in the next few months:

• ECB’s Villeroy says probably more rate cuts, data dependent – “agile pragmatism”

Anyone up for a 50bp rate from the Bank on December 12? Merry Christmas.

This article was written by Eamonn Sheridan at www.forexlive.com.