RBC analysts are looking for a long series of European Central Bank rate cuts ahead:
- We expect both the European Central Bank and the Bank of England to cut interest rates by 25 bps at every meeting until May 2025, contingent on domestic inflation pressures continuing to slow.
The thing is, that forecast was written before Thursday's meeting.
RBC did reiterate the call after the ECB cut on Thursday:
- ECB isn't in a rush
- risks are political ... a Trump presidency could force the ECB to keep the currency weak
- 25bps cut every meeting bringing rates to neutral in summer 2025
More on the ECB here:
- Forexlive Americas FX news wrap: ECB cuts rates, US retail sales beat estimates
- TD on the European Central Bank - no major surprise. Now pessimistic on euro.
- Deutsche Bank expect faster rate cuts from the European Central Bank to come
