Capital Economics: ECB expected to cut interest rates by 50 basis points at December meeting

Andrew Cunningham, an analyst at Capital Economics, said in a report that the European Central Bank may be more aggressive in cutting interest rates at its next policy meeting. Surveys released on Thursday showed that private sector activity in the euro zone continued to stagnate this month. This indicates that the economy was severely weak at the beginning of the last quarter of the year. Cunningham said that inflation is cooling and the European Central Bank may conclude that its policies no longer need to restrict economic activity. This means that the European Central Bank will cut interest rates by 50 basis points at its December meeting, faster than the previous 25 basis point cut. (Jinshi)