ECB’s Šimkus: Policy will clearly become less restrictive from here

• Cannot predict outcome of December’s meeting
• Risks to economic growth are skewed to the downside
• Services inflation remains high
• But disinflation trend is on a stable track

Nothing that hasn’t already been said since the policy decision last week. But as things stand, traders have fully priced in a 25 bps rate cut for December with ~118 bps of rate cuts priced until June next year. As a reminder, there will be five meeting decisions between now and then.

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