A Reuters Bank stated on September 9th that if the European Central Bank reduces interest rates on Thursday and indicates that inflation has made enough progress to further relax its policy, the euro may give back some of its recent gains. Analyst Ipek Ozkardeskaya of Reuters Bank stated in a report that inflation in the euro area is slowing down, and given the expectation of a significant interest rate cut by the Federal Reserve, there is increasing room for betting on a rate cut by the European Central Bank. However, she stated that unlike the Federal Reserve, the European Central Bank has only one mission, which is to maintain price stability. Therefore, if European officials believe that there is a possibility of accelerating inflation in the coming months, the European Central Bank may not succumb to the temptation of faster rate cuts.
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Credit Suisse: Aposta em corte de juros do Banco Central Europeu tem espaço para Ascensão
A Reuters Bank stated on September 9th that if the European Central Bank reduces interest rates on Thursday and indicates that inflation has made enough progress to further relax its policy, the euro may give back some of its recent gains. Analyst Ipek Ozkardeskaya of Reuters Bank stated in a report that inflation in the euro area is slowing down, and given the expectation of a significant interest rate cut by the Federal Reserve, there is increasing room for betting on a rate cut by the European Central Bank. However, she stated that unlike the Federal Reserve, the European Central Bank has only one mission, which is to maintain price stability. Therefore, if European officials believe that there is a possibility of accelerating inflation in the coming months, the European Central Bank may not succumb to the temptation of faster rate cuts.