UBS says its way too early to begin talking about European Central Bank interest rate cuts

UBS describe the rate decision from the ECB meeting on Thursday as a non-event. Highlights from the note:

• the remarks following emphasised again the dour state of the euro area economy
• Lagarde pointed to the need for steady policy
• the Bank is data-dependent
• inflation outlook will be closely observed (UBS add that the CPI print due on October 31 is the next major data point)

Earlier re EUR & the ECB:

• Deutsche Bank forecasting a German double-dip recession. HSBC target EUR/USD towards 1.02
• Goldman Sachs have ECB rate cuts from Q3 2024 as their 'base case'

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ICYMI:

• ECB leaves key interest rates unchanged in October monetary policy meeting
• Lagarde opening statement: Past hikes are increasingly dampening demand
• Lagarde Q&A: Now is not the time for foward guidance, it's time for data dependency