ECB policymakers advocate for rate cut amid economic slowdown
Investors expect ECB to lower deposit rate to 3.25, cut further
Divergent views within ECB on rate cuts due to volatile energy costs

FRANKFURT, Oct 9 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 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 of economists polled by Reuters anticipate a cut next week with a similar majority betting on a follow up move in December.

Even if we have one cut of 25 basis points now and another one in December, we will be back to just 3 still in highly restrictive territory, Greek central bank chief Yannis Stournaras told the Financial Times in his support for backtoback moves.

Finland39;s Olli Rehn, Latvia39;s Martins Kazaks and Portugal39;s Mario Centeno have all made the…