Market Outlook: ECB Set to Ease Policy at Every Meeting Until April

Simon Wells from HSBC stated that the European Central Bank is likely quite pleased with its decision to cut interest rates last week, following October Eurozone PMI data indicating a softening in demand. Wells argues that the ECB will continue easing policy at each meeting until April. He mentioned that the weak hiring intentions seen in the PMIs should leave the door open for a 50 basis point cut in December but emphasized that the survey data being generally in line with consensus expectations does not indicate an urgency for a rate cut. According to Wells, service price indices also showed an increase, suggesting persistent inflation in this sector.