Markets expect rate cuts in 2024 as recession risks rise
The October meeting of the ECB’s Governing Council saw the Central Bank maintain its key deposit rate at 4%, which was very much in line with expectations.
Today’s budget contained a fresh package of cost of living support measures totalling €2.7bn that will be rolled out over the winter months. These are mainly taking the form of direct household payments and energy credits. The Government is also providing an additional €6.4bn in other spending increases and tax cuts for next year.
PMI declined to 49.6 in Sep, indicating business conditions deteriorated slightly. New orders fell, including export orders. Output contracted for a seventh month running.
