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ECB Watch: Snip now, do the data dance later
The ECB is set to cut rates next week. With staff forecasts likely to show inflation in line with the target ahead, further cuts look likely in the future subject to incoming data confirming the ECB’s baseline. First rate cut will almost certainly take place next week. On the back of staff forecasts likely showing inflation in line with the target in the medium term, the Governing Council regaining confidence in its ability to forecast inflation and benchmark rates still clearly in restrictive territory, we think the ECB will indicate that further gradual cuts look likely going forward. Signals of more cuts ahead ... (full story)