CoinVoice has recently learned that a survey shows European Central Bank officials will wait until December to implement the next rate cut, which is likely to be the last step in this round of rate cuts. Compared to the July survey, economists have pushed back their expectations for the next rate cut by three months.
They believe that by then, deposit rates will fall to 1.75% and will remain at that level for 9 to 10 months, after which, as demand rebounds, the European Central Bank will be forced to reverse its policy direction. Waiting until the final decision in 2025 to take action will give the ECB policymakers more time to assess the impact of the trade turmoil triggered by U.S. President Trump.
By December, policymakers will have data on third-quarter economic performance, which will more clearly reflect the economy's underlying momentum after the distortion effects caused by companies acting ahead of U.S. tariff increases at the beginning of the year have faded. The new forecast report will also provide them with their first insights into growth and inflation trends for 2028. (Golden Ten) [Original link]
