Citigroup Anticipates ECB to Reduce Policy Rates by 25 Bps in October Meeting, According to Reuters

Citigroup has indicated that it anticipates the European Central Bank (ECB) will lower interest rates by 25 basis points during its upcoming meeting on October 17, according to a note released on Tuesday.

This adjustment in outlook follows comments from ECB President Christine Lagarde during her recent testimony at the European Parliament, wherein she expressed increased confidence in the timely return of inflation to targeted levels. She noted that this assessment will be considered during the forthcoming policy meeting.

Additionally, Citigroup projects further rate cuts in December and into early 2025, forecasting that the policy rate will reach 1.5% by September 2025.