Moderate growth beneath volatile Irish GDP data
by AIB Treasury Economic Research Unit
- The ECB cut interest rates for a second time this year at the September policy setting 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.
- Market rate expectations for the ECB over recent weeks have tended to lean towards the Deposit rate ending the year at 3%
- However, the exceptional caution of the ECB in its cutting cycle might leave it behind the curve in early 2025, if Eurozone macro data continues to undershoot expectations, and mean a 50bps cut may be necessary at some point in a weaker growth environment.
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