07:50 AM EDT, 10/18/2024 (MT Newswires) -- After weaker inflation prints in the Eurozone in recent weeks, the European Central Bank delivered another 25bp rate cut on Thursday, as was widely expected, said UBS.

After one cut per quarter previously, in June and September, expectations only a few weeks ago were for the ECB to skip cutting at Thursday's meeting and not ease until December, wrote the bank in a note to clients. However, weak inflation prints and lackluster economic data opened the door for a faster pace of cuts.

From here, UBS expects the ECB to ease at every meeting until the end of mid-2025.

In the bank's view, risks are asymmetric from here. Given the downbeat mood regarding the European economy, UBS believes positive surprises could lift the euro (EUR) more than negative surprises would put it under pressure.

As the bank continues to expect a gradual recovery of the European economy in 2025, UBS sticks to its forecast of EURUSD moving back into a 1.10-1.15 range in the coming months.