FX.co ★ Amended: European Economic News Preview: ECB Set To Cut Key Rates

Headline correction for clarity

The European Central Bank is anticipated to reduce its key interest rates by 25 basis points due to declining inflation and economic indicators suggesting a weaker outlook.

The ECB's governing council is expected to announce the results of its policy meeting in Frankfurt at 8:15 am ET. Additionally, macroeconomic projections from ECB staff will be released. ECB President Christine Lagarde is scheduled to hold a press conference at 8:45 am ET.

ING economist Carsten Brzeski noted that while the battle against inflation is not completely over, as wage growth and price expectations remain high, further rate cut decisions beyond the September meeting have become more complex and contentious than currently anticipated by financial markets.

Other significant economic reports from Europe include final inflation data from Spain and quarterly unemployment figures from Italy.

At 2:00 am ET, Destatis will release Germany’s wholesale prices for August. Concurrently, consumer price data from Sweden will also be available.

At 3:00 am ET, Spain's INE is set to publish the final inflation figures for August, with preliminary estimates indicating a decrease in consumer price inflation to 2.2 percent from 2.8 percent in July.

At 4:00 am ET, Italy will release unemployment statistics, with expectations that the jobless rate will decline to 7.1 percent in the second quarter from 7.2 percent in the previous quarter.