UBS says its way too early to begin talking about European Central Bank interest rate cuts

<p>UBS describe the rate decision from the ECB meeting on Thursday as a non-event. Highlights from the note:</p><ul><li>the remarks following emphasised again the dour state of the euro area economy</li><li>Lagarde pointed to the need for steady policy</li><li>the Bank is data-dependent</li><li>inflation outlook will be closely observed (UBS add that the CPI print due on October 31 is the next major data point)</li></ul><p>Earlier re EUR &amp; the ECB:</p><ul><li><a href="https://www.forexlive.com/centralbank/deutsche-bank-forecasting-a-german-double-dip-recession-hsbc-target-eurusd-towards-102-20231026/" target="_blank" rel="follow" data-article-link="true">Deutsche Bank forecasting a German double-dip recession. HSBC target EUR/USD towards 1.02</a></li><li><a href="https://www.forexlive.com/centralbank/goldman-sachs-have-ecb-rate-cuts-from-q3-2024-as-their-base-case-20231026/" target="_blank" rel="follow" data-article-link="true">Goldman Sachs have ECB rate cuts from Q3 2024 as their 'base case'</a></li></ul><p>—</p><p>ICYMI:</p><ul><li><a href="https://www.forexlive.com/centralbank/ecb-leaves-key-interest-rates-unchanged-in-october-monetary-policy-meeting-20231026/" target="_blank" data-article-link="true">ECB leaves key interest rates unchanged in October monetary policy meeting</a></li><li><a href="https://www.forexlive.com/centralbank/lagarde-opening-statement-past-hikes-are-increasingly-dampening-demand-20231026/" target="_blank" data-article-link="true">Lagarde opening statement: Past hikes are increasingly dampening demand</a></li><li><a href="https://www.forexlive.com/centralbank/lagarde-qa-now-is-not-the-time-for-foward-guidance-its-time-for-data-dependency-20231026/" target="_blank" data-article-link="true">Lagarde Q&amp;A: Now is not the time for foward guidance, it's time for data dependency</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.