Bloomberg News

RBS Says ECB May Cut Benchmark Less Than Projected This Week

October 03, 2011

Oct. 3 (Bloomberg) -- Royal Bank of Scotland Plc said it now expects the European Central Bank to lower its benchmark interest rate by 25 basis points, when council members meet on Oct. 6, instead of a previously forecast 50 basis points.

“We believe the 3 percent inflation print came at the wrong time and will likely strengthen the case for those on the council preferring at this stage to focus only on additional non-standard measures,” RBS economists including Jacques Cailloux in London said in an e-mailed statement today. Still, “we remain confident that the environment warrants a larger rate cut.”

To contact the reporter on this story: Scott Hamilton in London at shamilton8@bloomberg.net

To contact the editor responsible for this story: Simone Meier at smeier@bloomberg.net


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