JPMorgan postpones ECB rate cut forecast to December after policy meeting

JPMORGAN now expects the European Central Bank to lower interest rates in December this year compared to its prior forecast of a quarter-point cut in October after the central bank left interest rates unchanged in its policy meeting.

“We recognise that the ECB may be done, but global growth risks are still significant and the projected inflation undershoot has become larger,” JPMorgan strategists said in a note dated Sep 11.

The central bank left its deposit rate unchanged at 2 per cent on Thursday and maintained an upbeat view on growth and inflation. REUTERS