Japan’s Rising Inflation Strengthens Case for a Near-Term BOJ Rate Hike 
UK Raises Deposit Protection Limit to £120,000 to Strengthen Saver Confidence 
Japan’s Inflation Edges Higher in October as BOJ Faces Growing Pressure to Hike Rates 
U.S. Productivity Growth Widens Lead Over Other Advanced Economies, Says Goldman Sachs 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
The European Central Bank (ECB) will announce a 0.25 percentage point cut in the interest rate, lowering the rate on its deposit facility to 2.50%. This move is widely anticipated but is open to contention among policymakers about the future direction of rate cuts, with some contending that there may be a pause due to concerns that policy can no longer be described as clearly restrictive.
The action is amid a sufficiently decelerating rate of inflation, even though core inflation remains a problem, and the ECB wishes to maintain a medium-term inflation target of 2%. Economic growth in the eurozone is weak, with downside risks, further to support the case for monetary loosening.
Markets anticipate further rate cuts, even to 2% by end-2025, and are looking closely at the ECB forward guidance and new economic projections. The neutral rate is in debate, with ECB President Christine Lagarde placing it in the range of 1.75% to 2.25%
