- ECB President Christine Lagarde hinted at a possible rate cut, driven by weak inflation and Germany’s economic struggles.
European Central Bank (ECB) President Christine Lagarde signaled that weaker-than-expected inflation will be on the agenda at the central bank’s October meeting next week. This has fueled speculation that policymakers could move to cut rates again.
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Germany’s sluggish growth has added to the ECB’s challenges. While other parts of the eurozone are showing signs of recovery, Berlin issued a stark warning this week, forecasting its economy will contract for a second consecutive year—a major drag on the region’s broader outlook.
Technical signals also potentially point to downside risks. The Relative Strength Index (RSI) is approaching oversold territory, and a break below the 1.0900 level could see traders targeting the 200-day moving average near 1.08710
