ECB Anti-Inflation Resolve May Be Sapped by Fed's Surprise Cut
The European Central Bank's resolve to fight inflation may diminish following the U.S. Federal Reserve's emergency interest-rate reduction, The Bloomberg reports:
Investors increased bets on the ECB's first cut since 2003 after the Fed lowered its rate by three-quarters of a percentage point to 3.5 percent. European policy makers may now even consider a half-point reduction to spur confidence, said the Royal Bank of Scotland Group Plc's Jacques Cailloux.
