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LONDON (Reuters) – Deutsche Bank said on Thursday it now anticipated a faster European Central Bank rate-cutting cycle, with back-to-back quarter-point rate cuts starting from December.
The bank said that it had previously expected the central bank to follow a gradual easing path with quarter point cuts every quarter until a terminal rate of 2-2.5% was reached around end-2025.
“We are moving to a faster normalization call, with the ECB to reach the same terminal rate of 2.00-2.50% six months earlier in mid-2025,” the bank said in a note.
“We expect this more rapid easing cycle to be achieved with back-to-back 25 bp cuts from December, but we do not rule out a 50bp cut in December.”
Deutsche is the latest bank to change its ECB policy call this week following further signs of a weakening economic outlook.
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https://www.investing.com/news/economy-news/deutsche-bank-says-now-expects-a-faster-ecb-ratecutting-cycle-3633353
Reuters
