{"id":109225,"date":"2025-10-28T22:56:13","date_gmt":"2025-10-28T22:56:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/109225\/"},"modified":"2025-10-28T22:56:13","modified_gmt":"2025-10-28T22:56:13","slug":"fed-and-ecb-rate-decisions-to-be-announced-this-week","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/109225\/","title":{"rendered":"Fed and ECB rate decisions to be announced this week"},"content":{"rendered":"

The US Federal Reserve is expected to cut interest rates again this week.<\/p>\n

It comes as investors are monitoring the effects of the US government shutdown, the second longest shutdown in history, and earnings results from tech giants Apple, Microsoft, Meta, Amazon and Alphabet.<\/p>\n

All expectations at the moment are that we will get that 25 basis point cut announced tomorrow by the Federal Reserve, according to Deloitte Ireland Chief Economist Kate English.<\/p>\n

“Crucially, we did get inflation data released last Friday, this had been delayed a number of weeks because of that government shutdown, but it was in line with potentially what some people had expected, inflation had increased but not substantially, just above that 3% mark,” she commented.<\/p>\n

The Federal Reserve have not received government data on the labour market since its last meeting because of that government shutdown.<\/p>\n

In its absence, they now look to private sector sources and their own anecdotal information.<\/p>\n

“There’s nothing to suggest that the slowdown in labour market or employment growth within the US has changed since their previous meeting,” exlained Ms English<\/p>\n

“Of course nothing is 100% but we are still expecting that rate cut and potentially another 25 basis points before the end of the year as well,” she said.<\/p>\n

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The European Central Bank is also meeting this week and due to announce its rate decision on Thursday.<\/p>\n

After eight rate cuts since mid-2024, the ECB is widely expected to hold interest rates steady at 2% for a third consecutive meeting.<\/p>\n

Euro zone inflation rose to 2.2% in September, above target for the first time since April, as services prices rose and energy cost declines slowed.<\/p>\n

That was in line with expectations. The ECB sees inflation dropping to 1.7% next year and staying below target through mid-2027.<\/p>\n

Ms English says growth within the euro zone is looking a little bit more positive than what it was last year and at the start of this year.<\/p>\n

“It’s now expected to grow over 1% in 2025, which isn’t amazing, but it’s still up from where we were previously,” she said.<\/p>\n

“And we did get PMI data released last week that showED quite strong growth within the services industry and in particular a little bit of a bright spot within Germany, which is the first one we’ve seen for quite some time,” she added.<\/p>\n

She also said expectations remain that we will not see any further rate cuts from the ECB as inflation continues to be hovering towards its 2% target.<\/p>\n

“The risks at the moment for inflation within the EU are two-sided; one, if we begin to see that stronger economic growth come through and a stronger European consumer, does that push up prices naturally through more spending?”.<\/p>\n

“On the flip side of it, if we see that continuation of a strong euro versus the dollar and that further reduction in energy costs, does it bring inflation down,” said Ms English.<\/p>\n","protected":false},"excerpt":{"rendered":"The US Federal Reserve is expected to cut interest rates again this week. It comes as investors are…\n","protected":false},"author":2,"featured_media":109226,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60],"class_list":["post-109225","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/109225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=109225"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/109225\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/109226"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=109225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=109225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=109225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}