JPMorgan Chase Brings Forward Expectations for 50 Basis Points Rate Cut from ECB

JPMorgan Chase (NYSE:JPM) has revised its expectation for the European Central Bank to cut interest rates by 50 basis points from January to December. The bank cited slowing economic activity in the Eurozone as the reason for moving its call for a half-point rate cut to December. Previously, JPMorgan expected policymakers to wait until January to increase the pace of easing. The report from JPMorgan has encouraged money market traders to bet on a 50 basis point cut next month, raising the likelihood of such an outcome from 10% to 20%. Economist Greg Fuzesi stated, "Given the sharp PMI decline, decelerating service inflation momentum, the likelihood of persistent trade uncertainty, and the starting point of restrictive rates, the situation looks strong."