ECB to cut key rate half point in Oct.: JPMorgan (by William L. Watts)
FRANKFURT (MarketWatch) -- The European Central Bank will likely cut its main policy rate by a half point in October to 1%, reversing this year's rate hikes as it deals with signs the euro-zone debt crisis will provide an even larger drag on growth than previously expected, wrote economists at JPMorgan Chase Bank in London, in a research note. "The data are pretty clearly pointing downwards, so why save your limited conventional bullets for just another month or two?" wrote economist Greg Fuzesi. At the margin, it may also be easier to deliver a cut at ECB President Jean-Claude Trichet's final meeting, with Italy's Mario Draghi set to take the helm in November, he said.