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Capital Investment Macro: ECB may cut interest rates again next year

Internet reports that falling inflation in the euro zone is likely to lead the European Central Bank to cut interest rates again next year. In past policy meetings, the European Central Bank has kept its key interest rate unchanged, the euro zone economy has shown flexibility, and inflation has been basically controlled. But Jack Allen-Reynolds, deputy chief economist for the euro zone at Capital Investment Macro, said that slowing wage growth and falling commodity prices could cause core inflation to fall below 2% next year, and overall inflation will fall further as energy prices weaken. This could prompt ECB rate-setters to reduce borrowing costs. (Jin Shi)

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