Pansen Macro: The European Central Bank May Still Cut Rates Again in September
According to a report by Jinse Finance, Melanie Debono of Pantheon Macroeconomics wrote that despite no signs of easing inflation in the eurozone, the European Central Bank may still cut interest rates again in September. Data shows that the annual inflation rate in the eurozone remained unchanged at 2.0% in July, with core inflation also holding steady. Debono noted that with accelerating food inflation and the impact of oil price base effects, eurozone inflation may rise again in the remaining months of this year. However, she pointed out that the ECB would view turbulent markets and a weakening US economy as sufficient reasons to lower rates to 1.75% at the September meeting. If core inflation declines in August, this move will be further reinforced.
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