EU Rates Spark: Last call for 50bp in December

From think.ing.com

Today’s eurozone flash CPI should end any chance of a 50bp ECB cut next month. A large undershoot would be needed to push market expectations back in that direction after officials did not latch on to the weaker PMIs. In France, it looks as if the worst can be avoided, but the difficult politics of reining in the deficit are not going away Spanish and German CPI slightly undershot consensus, which means a 50bp cut in December is not fully off the table. Having said that, the eurozone CPI today will have to come in significantly below expectations for markets to price in a higher probability of a 50bp cut. Right ... (full story)