ECB policymakers see October cut unlikely, by Reuters

FRANKFURT (Reuters) – European Central Bank policymakers believe an interest rate cut in October is unlikely, barring a major deterioration in the growth outlook, three sources told Reuters.

The ECB cut borrowing costs again on Thursday, with President Christine Lagarde saying a “downward path” in rates was “quite evident” but “not predetermined” in terms of pace and destination.

Sources who spoke to Reuters on condition of anonymity said a move on October 17 could not be ruled out but was unlikely as policymakers would not have much new information by then and would rather wait for another round of screenings in December.

One source added that it would take major negative surprises on the growth front for the ECB to cut borrowing costs again at its next meeting.

The ECB declined to comment.

Thursday’s meeting was unusually short and consensual, ending at 0900 GMT rather than an hour or more later as is normally the case, the sources said.

Lagarde said at Wednesday’s news conference that the decision to cut rates was unanimous.