October ECB rate cut bets pared back after press conference
ECB cuts rates 25 bps, second cut of the year
Risk of ECB moving too slowly investors

Sept 12 Reuters Traders pared back their bets on backtoback rate cuts from the European Central Bank for the rest of the year on Thursday, as policymakers provided little clarity on how willing they were to double down on monetary easing.

Sources also told Reuters shortly after the ECB meeting that ended on Thursday that a further rate cut at the central bank39;s next meeting in October was unlikely barring a major deterioration in the outlook for growth.

The bank earlier cut rates for the second time this cycle, reducing its key deposit rate to 3.50 as expected, but it reiterated that services inflation remains high and it would keep rates sufficiently restrictive for as long as necessary.

ECB chief Christine Lagarde said the rate path was not predetermined and that the central bank would decide rates meeting by meeting, with no precommitments.

Traders pared back bets on another 25 bps cut then to around 20, from over 30 prior to the meeting.

For the whole year, in addition to Thursday39;s move, they now expect 33 bps of cuts, down from 36 bps earlier on Thursday.

Lagarde did exactly what she wants to do not rock the boat in markets, said Danske Bank chief analyst Piet Christiansen.

It seems like she39;s happy with the current market pricing of roughly 25 basis points cuts per quarter for now.

Euro zone…