The post Bank will quite probably cut rates in October appeared on BitcoinEthereumNews.com.

European Central Bank (ECB) Governing Council policymaker and French central bank governor François Villeroy de Galhau said on Sunday that the central bank might cut the interest rate in the October meeting as economic growth is weak.   Key quotes ECB will probably cut interest rates on October 17. Economic growth is weak, bringing the risk that inflation will undershoot its 2% target. In the last two years, our main risk was to overshoot our 2% target, now we must also pay attention to the opposite risk, of undershooting our objective due to weak growth and a restrictive monetary policy for too long.ECB should be back at the “neutral” rate sometime in 2025. If we are next year sustainably at 2% inflation, and with still a sluggish growth outlook in Europe, there won’t be any reason for our monetary policy to remain restrictive, and our rates to be above the neutral rate of interest.  Market reaction  At the time of press, the EUR/USD pair was up 0.02% on the day at 1.0972.  Euro FAQs The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively…

---

Filed under: News - @ October 7, 2024 12:44 am