Citigroup said on Tuesday that the European Central Bank is expected to cut interest rates by 25 basis points at the meeting on October 17th.
Citigroup stated that this forecast is because ECB President Lagarde expressed at a hearing in the European Parliament that the Council's confidence in inflation returning to target in a timely manner has increased, and the Council will take this into consideration at the next policy meeting this month.
Citigroup further expects that subsequent interest rate cuts by the European Central Bank in December and early 2025 will bring the policy rate down to 1.5% before September 2025.
