Markets eye second ECB rate cut on Thursday

Another rate cut will mark the second reduction to reverse 10 interest rate hikes since July 2022, which were used to drive down stubborn inflation

ECB president Christine Lagarde has been vague on further reductions and has repeatedly said the Governing Council was not committing to any specific path of interest rate decisions. Picture: AP/Michael Probst

The European Central Bank (ECB) is expected to return to its roadmap of interest rate cuts at its meeting on Thursday.

Money markets have strengthened bets the European regulator will reduced interest rates by a further 0.25% following the first reduction of 0.25% announced in June, especially as the pace of eurozone inflation cooled further to 2.2% last month, hovering just above the ECB’s target of 2%.