Deutsche Bank Predicts ECB Rate Cuts in October Following Inflation Drop, Reports Reuters

LONDON (Reuters) – On Tuesday, Deutsche Bank announced its expectation that the European Central Bank (ECB) will reduce interest rates in October, driven by significant declines in inflation throughout the euro zone observed in September.

In a note published on Tuesday, analysts from Deutsche Bank, including chief economist Mark Wall, stated, "After an even deeper decline in September HICP inflation than anticipated, we are advancing our forecast for the next ECB rate cut of 25 basis points from December to October."

The analysts also indicated that a potential 50-basis point cut in December could be uncertain if the current trends of weakening growth and inflation persist. Comprehensive euro zone data is scheduled for release at 0900 GMT (1100 CET), and it is predicted to show that year-on-year inflation dropped to 1.8% in September, falling below the ECB’s target of 2%.