JPMorgan has shaken the markets with a revised bet for the European Central Bank (ECB) to cut interest rates by half a percentage point next month. The banking giant, originally expecting the move in January,

JPMorgan Chase & Co. has brought forward its call for a half-point interest-rate cut from the European Central Bank to December, citing the bloc’s slowing economic activity.

Inflation rose above the European Central Bank’s target in the eurozone this month, though likely not enough to deter policymakers from cutting interest rates for a third straight meeting next month.

The European Central Bank should continue cutting interest rates as euro-area inflation is likely to reach 2% in the first half of 2025, according to Governing Council member Francois Villeroy de Galhau.