Policy doves at the European Central Bank are preparing to fight for an interest rate cut next month after a string of weaker-than-expected economic data, a move likely to meet resistance from their more conservative peers,

Traders are growing increasingly confident that European Central Bank policymakers will react to the weakening economic outlook in the euro area by cutting interest rates next month.

AMSTERDAM (Reuters) - The European Central Bank (ECB) is likely to continue to cut interest rates at least through the first half of 2025, to a level between 2% and 3%, Dutch ECB governing council member Klaas Knot said on Tuesday.

Deutsche Bank said on Thursday it now anticipated a faster European Central Bank rate-cutting cycle, with back-to-back quarter-point rate cuts starting from December. The bank said that it had previously expected the central bank to follow a gradual easing path with quarter point cuts every quarter until a terminal rate of 2-2.

The European Central Bank will likely make a series of consecutive 25 basis point cuts at each of its upcoming meetings between now and April 2025, HSBC’s analysts said

HSBC said on Wednesday it now expects the European Central Bank to cut interest rates by 25 basis points at every meeting from October through to April next year given weakening economic data.

The European Central Bank will start cutting interest rates at every meeting between October and April, according to economists at HSBC.