1.75% or the terminal interest rate? The market bets that the European Central Bank will end the easing cycle after a rate cut in December

According to a Bloomberg survey, the European Central Bank is expected to maintain its interest rate policy until December, when a rate cut may signal the end of the easing cycle. Economists have pushed back their expectations for a rate cut, believing that the deposit rate will remain unchanged at 1.75% for nine to ten months. Decision-makers will assess economic data at the December meeting, and if they miss the opportunity for a rate cut, the market will conclude that the easing cycle has ended. Economists at TD Securities pointed out that if changes in trade patterns lead to weaker economic data, the European Central Bank may cut rates again