Strategy: How to position for ECB cuts

Room for more ECB cuts in the near term We think the ECB will lower the refi rate further. A 50bp cut at the December meeting cannot be ruled out. An emergency rate cut cannot be ruled out either. The ECB refi rate could fall to 0.50%, and the deposit rate is likely to reach its floor at 0.25%. Interest rate corridor to narrow substantially, which should bring down the marginal lending rate. We think the ECB will be able to support lower Euribor fixings as rate corridor narrows and the easing

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