- Inflation has come down quite a lot
- Recent data on prices are heading towards our 2% goal
- If inflation converges towards our goal, then monetary policy will respond accordingly
This just reaffirms their current stance and market pricing for a rate cut in December. The question now is, how much will the ECB move by? The odds of a 25 bps rate cut are at ~63% with the remainder pinned to a 50 bps move instead.