Opinion grows ECB rate cut on the cards as early as September

The weight of opinion is building that the ECB will return to some sort of easing and cut rates as early as September, after the ECB was reported to be mulling changing its inflation target, and S&P Global Ratings projected some sort of stimulus, while a poll by Reuters suggested the central bank will cut the deposit rate.

Europe’s economy is running at “low gear and two speeds” which will pave the way for the ECB to “to cut rates as soon as September”, S&P said, seeing no rate until the middle of 2021.