UBS On-Air: Paul Donovan Daily Audio 'Cuts, continuity, clarification'

There is a strong consensus about today’s ECB policy rate decision. A total of 53 out of 55 surveyed economists expect a 0.25% rate cut, and ECB Chief Economist Lane has practically promised an easing (chief economists are, of course, never wrong). The idea this year has been that most major central banks would follow inflation lower. Eurozone inflation is lower. Rate cuts are not stimulatory, but stabilizing (keeping the real interest rate steady).