{"id":134912,"date":"2024-10-25T09:20:43","date_gmt":"2024-10-25T06:20:43","guid":{"rendered":"https:\/\/tietopankki.crnet.fi\/fi\/news\/will-the-european-central-bank-opt-for-a-large-rate-cut-in-december\/"},"modified":"2024-10-25T09:20:43","modified_gmt":"2024-10-25T06:20:43","slug":"will-the-european-central-bank-opt-for-a-large-rate-cut-in-december","status":"publish","type":"post","link":"https:\/\/tietopankki.crnet.fi\/fi\/news\/will-the-european-central-bank-opt-for-a-large-rate-cut-in-december\/","title":{"rendered":"Will the European Central Bank opt for a large rate cut in December?"},"content":{"rendered":"<div class=\"mp_wrapper\">\n  <div class=\"mepr-unauthorized-message\">\n    <p>You are unauthorized to view this page.<\/p>\n  <\/div>\n  <div class=\"mepr-login-form-wrap\">\n            \n<div class=\"mp_wrapper mp_login_form\">\n                  <!-- mp-login-form-start -->     <form name=\"mepr_loginform\" id=\"mepr_loginform\" class=\"mepr-form\" action=\"https:\/\/tietopankki.crnet.fi\/fi\/login-2\/\" method=\"post\">\n            <div class=\"mp-form-row mepr_username\">\n        <div class=\"mp-form-label\">\n                              <label for=\"user_login\">Username<\/label>\n        <\/div>\n        <input type=\"text\" name=\"log\" id=\"user_login\" value=\"\" \/>\n      <\/div>\n      <div class=\"mp-form-row mepr_password\">\n        <div class=\"mp-form-label\">\n          <label for=\"user_pass\">Password<\/label>\n          <div class=\"mp-hide-pw\">\n            <input type=\"password\" name=\"pwd\" id=\"user_pass\" value=\"\" \/>\n            <button type=\"button\" class=\"button mp-hide-pw hide-if-no-js\" data-toggle=\"0\" aria-label=\"Show password\">\n              <span class=\"dashicons dashicons-visibility\" aria-hidden=\"true\"><\/span>\n            <\/button>\n          <\/div>\n        <\/div>\n      <\/div>\n            <div>\n        <label><input name=\"rememberme\" type=\"checkbox\" id=\"rememberme\" value=\"forever\" \/> Remember Me<\/label>\n      <\/div>\n      <div class=\"mp-spacer\">&nbsp;<\/div>\n      <div class=\"submit\">\n        <input type=\"submit\" name=\"wp-submit\" id=\"wp-submit\" class=\"button-primary mepr-share-button \" value=\"Log In\" \/>\n        <input type=\"hidden\" name=\"redirect_to\" value=\"\/fi\/wp-json\/wp\/v2\/posts\/134912\" \/>\n        <input type=\"hidden\" name=\"mepr_process_login_form\" value=\"true\" \/>\n        <input type=\"hidden\" name=\"mepr_is_login_page\" value=\"false\" \/>\n      <\/div>\n    <\/form>\n    <div class=\"mp-spacer\">&nbsp;<\/div>\n    <div class=\"mepr-login-actions\">\n        <a\n          href=\"https:\/\/tietopankki.crnet.fi\/fi\/login-2\/?action=forgot_password\"\n          title=\"Click here to reset your password\"\n        >\n          Forgot Password        <\/a>\n    <\/div>\n\n      \n    <!-- mp-login-form-end --> \n  <\/div>\n      <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<div class=\"smart_content_wrapper\">\n<p>Money markets see an increased likelihood of the European Central Bank (ECB) deepening its rate cuts in December following weak economic data. However, analysts expect the bank to maintain a gradual approach to rate reductions due to the persistent upside risks in inflation.<\/p>\n<p>Market participants have raised their expectations for the European Central Bank (ECB) to take a significant step with its next interest rate move, following poor business activity indicators on Thursday. Money markets are now pricing in a 50% chance of the bank cutting the interest rate by half a percentage point in December. Meanwhile, ECB officials are divided on the necessity of such a large reduction.<\/p>\n<p>Major European government bond yields fell significantly after the weak October business activity readings in the manufacturing and services sectors on Thursday. Movements in bond yields typically reflect expectations of the ECB\u2019s interest rate trajectory, particularly for short-term instruments. The yield on the 2-year German and French government bond, which is highly sensitive to interest rate changes, fell to yearly lows before rebounding, indicating that traders have increased their bets on a larger rate cut from the central bank.<\/p>\n<p>According to S&amp;P Global\u2019s flash estimates, the manufacturing Purchasing Manager Index (PMI) for both France and Germany has been contracting for more than two years in October, though Germany\u2019s reading has improved. France\u2019s services PMI is expected to slip back into contraction after two months of growth, suggesting that the boost from the Paris Olympics was temporary. This data, along with a sharp decline in headline inflation in September, has significantly raised the chances of the ECB delivering a steeper rate cut in December, following consecutive cuts in September and October\u2014the first such moves in 13 years.<\/p>\n<p>The eurozone\u2019s annual inflation fell to 1.8% in September, its lowest level in three years and below the ECB\u2019s 2% target. However, core CPI, which excludes volatile items like food, energy, alcohol, and tobacco, remained relatively high at 2.7%. As such, the upcoming consumer price index for October, due next week, will be crucial for market sentiment.<\/p>\n<p>Michael McCarthy, market strategist and chief commercial officer at Moomoo Australia, said that eurozone inflation still presents \u201csubstantial upside risk.\u201d He added: \u201cDespite expectations, next week&#8217;s core inflation reading for October is likely to show an increase in the year-on-year rate to 2.8% (from 2.7% previously),\u201d and \u201cIf the increase exceeds consensus, there could be a sharp adjustment in interest rate markets.\u201d<\/p>\n<p><a rel=\"noopener\" href=\"https:\/\/www.euronews.com\/business\/2024\/10\/25\/will-the-european-central-bank-opt-for-a-large-rate-cut-in-december\">Read more&gt;&gt;<\/a><\/p>\n<p>Source: <a rel=\"noopener\" href=\"https:\/\/www.euronews.com\/business\/2024\/10\/25\/will-the-european-central-bank-opt-for-a-large-rate-cut-in-december\">Euronews<\/a><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<p>The post <a rel=\"noopener\" href=\"https:\/\/vastuullisuusuutiset.fi\/fi\/vaufien\/will-the-european-central-bank-opt-for-a-large-rate-cut-in-december\/\">Will the European Central Bank opt for a large rate cut in December?<\/a> appeared first on <a rel=\"noopener\" href=\"https:\/\/vastuullisuusuutiset.fi\/fi\">Vastuullisuusuutiset.fi<\/a>.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22],"tags":[1079,13213,606,607,608],"class_list":["post-134912","post","type-post","status-publish","format-standard","hentry","category-news","tag-european-central-bank","tag-rate-cut","tag-vau_viikkokatsaus","tag-vauen","tag-vaufien"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/tietopankki.crnet.fi\/fi\/wp-json\/wp\/v2\/posts\/134912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tietopankki.crnet.fi\/fi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tietopankki.crnet.fi\/fi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tietopankki.crnet.fi\/fi\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tietopankki.crnet.fi\/fi\/wp-json\/wp\/v2\/comments?post=134912"}],"version-history":[{"count":0,"href":"https:\/\/tietopankki.crnet.fi\/fi\/wp-json\/wp\/v2\/posts\/134912\/revisions"}],"wp:attachment":[{"href":"https:\/\/tietopankki.crnet.fi\/fi\/wp-json\/wp\/v2\/media?parent=134912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tietopankki.crnet.fi\/fi\/wp-json\/wp\/v2\/categories?post=134912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tietopankki.crnet.fi\/fi\/wp-json\/wp\/v2\/tags?post=134912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}