No surprises as ECB rates remain unchanged, but what’s coming down the line [Video]

There was no surprise as the news that ECB are set to leave interest rates at 3.75% following its first cut in two years back in early June.

Speculation was rife that the bank would refrain from lowering rates once again, but there is still time for two cuts in 2024, according to Stephen Grissing, Director, Investment Strategist at Davy.

“Persistent wage growth, a record low unemployment rate, and stubborn inflation in the services sector meant that a consecutive interest rate cut was off the table at the July meeting. 

“Financial markets will be largely unchanged following today’s announcement. The futures market had priced in a probability of less than five percent for a rate cut today. 

Investors’ attention focused on Lagarde’s press conference for any indication for how the ECB is viewing progress on the disinflation process.

“Updated macroeconomic projections will be published at the September meeting and will help to provide further clarity on …