ECB's Panetta
- The economy is clearly weakening
- The environment is conducive to further cuts
- I wouldn't take for granted that we will stop at the neutral rate
There were a handful of ECB officials out yesterday with similar comments. The market is pricing in a 20% chance of a 50 bps cut on Dec 12 with ongoing priced to bring the ECB into the 1.75-2.00% range.
