Amended: European Economic News Preview: ECB Set To Cut Key Rates

Corrects story headline

The European Central Bank is widely expected to cut its key interest rates by 25 basis points amid falling inflation and economic indicators signalling a weaker outlook.

The governing council of the ECB is slated to announce the outcome of its policy meeting in Frankfurt at 8.15 am ET. ECB staff macroeconomic projections are also due.
ECB Chief Christine Lagarde will hold the press conference at 8.45 am ET.

Although the fight against inflation is not entirely over as wage growth and selling price expectations are still high, further rate cut decisions beyond the September meeting became more complicated and controversial than currently priced in by financial markets, ING economist Carsten Brzeski said.

Other major economic reports due from Europe are final inflation from Spain and quarterly unemployment data from Italy.

At 2.00 am ET, Destatis publishes Germany’s wholesale prices for August. In the meantime, consumer prices are due from Sweden.

At 3.00 am ET, Spain’s INE is scheduled to issue final inflation data for August. The flash estimate showed that consumer price inflation weakened to 2.2 percent from 2.8 percent in July.

At 4.00 am ET, unemployment figures are due from Italy. The jobless rate is expected to fall to 7.1 percent in the second quarter from 7.2 percent in the prior quarter.