ECB Considers Further Rate Cuts Amid Stagnant Eurozone Economy

As inflation stabilizes below 2%, the European Central Bank debates the pace and extent of future interest rate reductions.

The European Central Bank has already cut interest rates three times this year, with markets expecting further reductions as inflation stabilizes at 1.7%.
ECB officials are discussing the possibility of returning to zero or even negative real interest rates if economic conditions warrant it.
A potential 50-basis point 'jumbo' rate cut is on the table for December, though a 25-basis point cut is more probable, according to ECB policymakers.
ECB President Christine Lagarde and other officials emphasize the need for caution, closely monitoring economic and inflation data before making decisions.
The eurozone's growth forecast has been downgraded by the IMF to 1.2% for next year, adding pressure on the ECB to stimulate the economy.