TD Securities’ Global Macro Strategy Head, James Rossiter, along with his team, has highlighted a difficult choice ahead for the European Central Bank (ECB) in October, as reported by Odaily. While inflation remains stubbornly high in the services sector and the job market remains strong, recent statistics reveal that overall inflation is falling short of targets. Nevertheless, TD Securities predicts that the ECB will move forward with a rate cut next month, with expectations for a quicker series of reductions thereafter.

According to their analysis, the ECB is poised to implement successive cuts of 25 basis points from October through March of the following year, potentially lowering the deposit rate to 2.50%, which is six months sooner than earlier estimates suggested.