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European Central Bank set for third interest rate cut of the year in meeting this week

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Summary
Nutrition label

85% Informative

The European Central Bank is on course to deliver its third interest rate cut of the year at its meeting this Thursday .

Economists do not expect the ECB to change its guidance this week , but also do not see President Christine Lagarde correcting expectations for more rapid rate cuts.

Headline price rises in the euro area cooled to 1.8% in September , below the central bank's 2% target.

Core inflation, which strips out the more volatile components of energy, food, alcohol and tobacco, hit a two -and-a-half year low of 2.7% .

The ECB may have to lower its growth outlook for 2024 even further when it releases new staff projections in December .

But Schmieding warns that the central bank currently runs the risk of overreacting and easing monetary policy to far and too fast.

" Next year , inflation should not be a major issue... However, this will not hold for 2026 and 2027 , in our view," he said.

VR Score

93

Informative language

97

Neutral language

51

Article tone

formal

Language

English

Language complexity

55

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

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Known propaganda techniques

not detected

Time-value

short-lived

Source diversity

1

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