The New Hottest rumour In Europe: An ECB Rate Cut

secret tip whisper gossip

There’s a rumour out this morning which may be part of the rally in European markets.

Bank of America said the European Central Bank may cut rates by 50 basis points on October 5.

This rumour was denied by ECB member Yves Mersch. She told MNI: Wild expectations about an ECB rate cut show people have lost direction, and the ECB has one needle in its compass (inflation).

But there were opposite comments from the ECB’s Ewald Nowotny, who said ECB interest rate cut cannot be excluded.

UPDATE 7:05 ET: And a new batch of headlines:

ECB MAY DISCUSS RATE CUT AT MEETING, NOT ON OFFICIAL AGENDA

ECB SAID TO CONSIDER RESTARTING COVERED BOND PURCHASES

ECB SAID TO DEBATE NEW 12-MONTH LOANS AT OCT. 6 POLICY MEETING

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