The European Central Bank is expected to lower its key interest rate by another 25 basis points to 3.25% at its upcoming meeting on Oct. 17.
This decision is largely driven by the recent decline in inflation rates , which fell below the ECB’s target of 2% in September.
ECB President Christine Lagarde and other central bank officials have signaled their support for a rate cut, citing the positive inflation trajectory .
While some economists had previously questioned the timing of a rate cut in October, the consensus now leans towards a reduction at the upcoming meeting.
Beyond October, financial markets anticipate another 25 basis point rate cut in December. This would significantly ease monetary policy as the ECB balances economic growth with price stability.
