ECB Plans Interest Rate Cuts in January and March

Forex - European Central Bank policymakers plan to lower interest rates by a further quarter point in January and possibly in March if inflation stabilizes at the 2% target and economic growth continues to stagnate. Officials speaking anonymously to Bloomberg News stated that a gradual approach to reducing borrowing costs would be the most suitable path as long as the economy develops in line with current expectations. They noted that a larger half-point cut remains an option in emergencies, but emphasized that such a move risks creating an unwanted sense of urgency. Reiterating that no decision has yet been made and that assessments will be conducted based on all available information at each meeting, the officials highlighted that preferences could change following Trump's return to office in January as his policies become clearer.