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October ECB cut not a done deal

A 25bp interest rate cut by the ECB at its next meeting in mid-October is now more-or-less fully priced into the market. But while the odds of a cut have risen, it is far from a done deal. Much will depend on whether euro-zone inflation figures for September, due next week, will show a decent fall in services inflation. For now, our base case remains that the Bank will wait until December to cut again. 

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