ECB policymakers press case for October rate cut

FRANKFURT, Oct 09 (Reuters): Several European Central Bank policymakers argued their case on Wednesday for another interest rate cut next week, even if some of their colleagues remained unconvinced as turmoil in the Middle East fuels volatility in energy costs.
The ECB has already lowered rates twice this year and a cut to the 3.5 per cent deposit rate on Oct. 17 is almost fully priced in by financial markets, indicating investors expect the bank to accelerate the pace of policy easing given a weak economy and an unexpectedly quick slowdown in price growth.
"A cut is very likely and it will not be the last one, the rhythm depending on how the fight against inflation evolves," French central bank chief Francois Villeroy de Galhau told franceinfo radio station.
That message is fully in line with expectations as more than 90 per cent of economists polled by Reuters anticipate a cut next week with a similar majority betting on a follow up move in December.