European Central Bank member: Market pricing for interest rate cuts is highly aggressive.

European Central Bank monetary policy committee member Robert Holzmann said on Wednesday that a smooth downturn for the economy in Europe is assured, but he added that he is not sure that much has changed in the recent data.

Additionally, Holzmann suggested that market pricing regarding the extent of interest rate cuts is largely aggressive, stating that some members of the European Central Bank may vote in favor of a significant rate cut at the December meeting.

However, Holzmann mentioned that current data does not justify the European Central Bank cutting rates by 50 basis points during the upcoming meeting.

The global credit rating agency Fitch had predicted in a report released earlier this week that the European Central Bank would accelerate the interest rate cutting cycle more than previously expected, but not beyond a total of 200 basis points of cuts by the end of 2025.