Economists are now betting on a 0.25% rate cut by the European Central Bank (ECB) in October. The consensus up until recently was that the ECB would hold off until December.

The European Central Bank could accelerate the speed of interest-rate cuts as risks of economic stagnation and an increased slowdown in inflation are intensifying, Barclays economist Mariano Cena says in a note.

Traders are growing increasingly confident that European Central Bank policymakers will react to the weakening economic outlook in the euro area by cutting interest rates next month.

Several brokerages now expect the European Central Bank to deliver a quarter-point cut at its Oct. 17 meeting, as data showing economic weakness and slowing inflation pushes policy makers to focus more on growth and less on price pressures.

The European Central Bank will likely make a series of consecutive 25 basis point cuts at each of its upcoming meetings between now and April 2025, HSBC’s analysts said

HSBC said on Wednesday it now expects the European Central Bank to cut interest rates by 25 basis points at every meeting from October through to April next year given weakening economic data.