The drop in euro area inflation below the target level of two percent strengthens expectations that this week’s expected 0.25 percentage point interest rate cut will soon be continued. In September, the rate of increase in consumer prices in the euro area was 1.8 percent.
The European Central Bank, the ECB, will announce its interest rate decision on Thursday, and the reduction is already considered practically certain. The ECB started the downward trend in interest rates in June this year and lowered its key interest rates again in September.
Source: STT