ECB’s Vaslle says a rate cut in October is an option

• ECB’s Vasle: Inflation risks are abating but there is still some uncertainty.
• ECB’s Vasle: An October cut doesn’t necessarily mean another in December.
• ECB’s Vasle: An interest-rate cut in October is an option.

I’d say it’s more than just an option looking at the deceleration in EU CPI as well as the dismal growth numbers we’ve been seeing for the past few months.

For what it’s worth, rates markets are currently fully pricing in a 25bp cut for both October and December. Which seems very plausible given the economic picture.

This article was written by Arno V Venter at www.forexlive.com.