The European Central Bank's rate hiking cycle is over, according to all 85 economists polled by Reuters, but it won't be until at least July 2024 before it begins easing as the battle against elevated inflation rattles on. In September the ECB raised its key interest rates by 25 basis points, taking the deposit rate to 4.00% and the refinancing rate to 4.50%, but signalled its 10th hike in a 14-month-long streak was likely to be its last. None of the 85 economists polled by Reuters Oct. 12-19 had another lift in their outlook, but the timing of the first cut was more uncertain.
Revised data shows that euro-area inflation slowed in August, supporting the European Central Bank s view that no further interest-rate hikes are necessary. Consumer prices increased by 5.2%, down from the initial reading of 5.3%. Core inflation, which excludes volatile elements, remained at 5.3%. The ECB recently raised borrowing costs for the 10th consecutive time, but some officials have suggested that more moves may still be required.