3/3/2020, 6:42 PM (Source: TeleTrader)
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Commerzbank: ECB may follow Fed with rate cut

The European Central Bank (ECB) will likely follow the United States Federal Reserve's (Fed) move and decide to cut its own interest rates, according to the Commerzbank AG’s note, published by Bloomberg on Tuesday.

It is expected that the central bank officials will cut the deposit rate by 10 basis points, and expand the monthly bond purchase by €20 billion, mainly due to the overall slump in economic outlook amid the coronavirus outbreak, Joerg Kraemer, the Commerzbank’s chief economist commented today.

"The ECB is likely to combine the interest-rate cut with an increase in the allowances in order to reduce the burden for the banks," added Kraemer.

Baha Breaking News (BBN) / BJ