Societe Generale Projects European Central Bank Rate Cuts

Societe Generale expects the European Central Bank to deliver rate cuts this year and in 2020 due to a slowdown triggered by a probable U.S. recession, the bank's senior European economist Anatoli Annenkov said, according to ForexLive.

The central bank should have a better sense of the economy by September, according to SocGen.

Annenkov expects the ECB to cut its deposit rate by 10 bps in September after introducing a "downward bias" to its forward guidance, ForexLive said. 

The French bank projects the ECB will further reduce its deposit rate by 20 bps and refinancing rate by 10 bps in June 2020, as well as launch a 40-billion-euro ($45 billion) monthly quantitative easing program for one year. 

Related Links:

Christine Lagarde Nominated To Become Next ECB Chief

Should We Be Worried About The German Economic Slowdown?