Citigroup Expects ECB Rate Cut

(Reuters) – Citigroup announced that it now anticipates the European Central Bank (ECB) will reduce interest rates by 25 basis points in its meeting on October 17.

This adjustment follows comments from ECB President Christine Lagarde during her hearing at the European Parliament, where she stated that the Council’s confidence in a timely return of inflation to target has improved. This sentiment will be considered in the upcoming policy meeting this month.

Additionally, Citigroup predicts further rate cuts in December and into early 2025, projecting a policy rate of 1.5% by September 2025.