Overview
- At its Florence meeting, the ECB left the deposit rate at 2.0% and kept the main refinancing and marginal lending rates at 2.15% and 2.40%, extending a third straight pause after eight cuts through mid‑2025.
- The Federal Reserve reduced its policy rate by 25 basis points for the second time this year, taking the decision with key U.S. labor and inflation data delayed by a partial government shutdown.
- Fed policymakers have shown unusual internal divisions in recent meetings, with some officials favoring larger reductions, according to disclosures and reporting on committee debates.
- ECB officials advanced the digital‑euro project into a technical‑readiness phase, signaling a possible pilot in 2027 and potential readiness for a first issuance around 2029 if EU legislation is in place.
- Eurozone consumer prices rose 2.2% in September and the ECB projects 2.1% inflation for 2025, with Q3 GDP up 0.2%, while falling savings rates have left many euro‑area savers facing negative real returns.