ECB’s Makhlouf: The evidence would need to be overwhelming for 50 bps move in December

• Believes in cautious and prudent approach, policy is working as it is
• It would be “going a bit far” to say that a rate cut in December is “in the bag”
• We are going meeting by meeting
• Let’s see what the data tells us but reasonable to assume we are on a downwards trajectory on rates

Again, it reinforces the notion that it is safe to think that the ECB will cut rates again in December, barring any major surprises. As for the magnitude of the move, they might be leaning more towards a 25 bps one for the time being at least.

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