ECB Policymakers Point to December for Possible Rate Cut Debate
European Central Bank (ECB) officials are eyeing their December 18 meeting as the most likely time to revisit whether another interest rate cut is needed to help cushion the eurozone economy against the impact of U.S. tariffs, three sources told Reuters.
On Thursday, the ECB kept rates unchanged and maintained a relatively positive outlook on both growth and inflation, which dampened expectations for an immediate reduction in borrowing costs.
However, sources on the Governing Council stressed that the discussion is far from over. Policymakers are unlikely to have sufficient data to make a firm decision by the next meeting on October 29, making December the more realistic window for any policy shift.
The timing also aligns with fresh inflation and growth data as well as updated economic projections, which could provide a clearer picture of whether further easing is necessary. An ECB spokesperson declined to comment.
