ECB cuts key rates again
LONDON, Oct 17 (Reuters) -The European Central Bank cut interest rates for the third time this year on Thursday, pointing out that inflation in the euro zone is now increasingly under control and the economic outlook has worsened.
The euro rose to around $1.0865 from $1.0863just before the ECB rate decision EUR=EBS, while Europe's broad STOXX 600 index was last up 0.7% .STOXX
Germany's 10-year government bond yield DE10YT=RR, the benchmark for the bloc, was last up 1.7 basis points at 2.192%, compared to 2.197% previously. Yields move inversely to prices.
COMMENTS:
ARNE PETIMEZAS, DIRECTOR RESEARCH, AFS GROUP, AMSTERDAM:
"ECB cuts rates by 25 bps expected. Inflation and economic assessment is stating the obvious, and contains no surprises."
"However, I had expected the ECB would drop the 'not on a particular rate path' language from the statement and instead, acknowledge that we're now in an easing cycle. After all, this is the third cut in four months."
MARCHEL ALEXANDROVICH, ECONOMIST, SALTMARSH ECONOMICS, LONDON:
"The ECB lowers interest rates at consecutive meetings for the first time since 2011 and looks set to cut again in December."
"Even after today’s move, policy remains in restrictive territory. And with inflationary pressures easing, the Governing Council feels comfortable to nudge interest rates lower toward their neutral level."
Reporting by the Reuters Markets Team, Compiled by Dhara Ranasinghe; Editing by Amanda Cooper
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