FXNEWS-Trichet opens door for rate cuts-Action
Thu, Oct 2 2008, 13:23 GMT
http://www.afxnews.com
Oct 2 (Reuters) - "All in all...a softening of the stance on inflation, and indeed Trichet said in the press conference that a rate cut has been discussed, which opens the door for a further cut," Action Economics says, commenting on ECB President Jean-Claude Trichet's comments. "However, today's comments are not signaling that the ECB is ready to cut rates at the next meeting. Usually the ECB announces a rate cut a month in advance, which would mean a rate cut could come in December at the earliest." Action says it still sees rates on hold this year as the main scenario. "However, in the current climate of exceptional high uncertainty a rate cut even as early as next month cannot be ruled out. Everything will depend on how the financial turmoil unfolds over the next weeks."
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