UBS Urges ECB to Consider 'Moderate' Rate Cut
TradingKeySep 12, 2024 8:57 AM
TradingKey- UBS CEO Sergio Ermotti has urged the European Central Bank (ECB) to adopt a cautious approach and suggested that a "moderate" rate cut would be appropriate.
His comments came ahead of the ECB's monetary policy decision, with analysts predicting a high likelihood of a 25 basis point cut.
"I guess a moderate cut. " Ermotti said, "There is room for the ECB and, in general, the central banks as I said before to maybe to do some cuts, but the scope and size of those cuts have to be coherent with the first mandate, [which] is the fight of inflation and eventually [to] stimulate the economy,"
The ECB is responsible for setting monetary policy for the 20 countries in the eurozone, and it maintained interest rates at 3.75% in July.
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