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ECB’s Holzmann Suggests Likely Quarter-Point Rate Cut in December

by Elena

European Central Bank (ECB) policymaker Robert Holzmann expressed in a Bloomberg News interview on Thursday that a quarter-point interest rate cut is likely in December. He noted, however, that while a larger half-point cut is “unlikely,” it is not completely off the table. Holzmann also mentioned that a preemptive cut in October might have been sufficient to allow for a pause in December.

Market reaction to Holzmann’s comments was muted, with the EUR/USD exchange rate trading at 1.0795, reflecting a modest increase of 0.09% for the day.

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