The ECB cut interest rates for a second time this year at the September policy meeting of its Governing Council, but a cautious trajectory for rate cuts in the coming months risks choking off an anaemic growth profile across the Eurozone. The Deposit rate was lowered by 25 basis point (bps) to 3.50% while the Refinancing rate was cut by 60bps to 3.65%, which included the previously announced reduction in the spread between it and the Deposit rate from 50bps to 15bps. The rate cuts were very much in line with market expectations, but much uncertainty surrounds the future pace of easing. In this regard, President Lagarde was purposely vague in her outlook. She emphasised that the ECB is not pre-committing, and that it will continue to take a meeting-by-meeting approach, meaning the declining path of rates is not predetermined.