ECB to cut deposit rate by 10 bps in September and December - HSBC

HSBC weighs in with their thoughts on the ECB's next monetary policy steps

The firm says that it doesn't see an 'imminent' restart of QE by the ECB and that they don't expect the central bank to bring the deposit rate below -0.60%. The current deposit facility rate stands at -0.40% so two 10 bps cuts according to their forecast will bring it to the threshold they mentioned of -0.60%.

Adds to the growing chorus as seen earlier today:

• Reuters poll: ECB to either cut its deposit rate or ease forward guidance further by end-September