INSTANT VIEW - ECB news conference after 50 bps rate cut

FRANKFURT (Reuters) - Following are analysts' comments on a news conference given by ECB president Jean-Claude Trichet following the bank's 50 bps rate cut to 3.25 percent.

ANALYSTS' COMMENTS

Latest comments

BENJAMIN REITZES, BMO CAPITAL MARKETS, TORONTO

"Considering the Bank of England's very aggressive move, the ECB's 50 bps cut was somewhat disappointing (although they did discuss a 75 bps move). With inflation forecast to continue falling and growth expected to be sluggish, look for another 50 bps in December and likely further easing early next year.

The ECB was late to join the rate cut party and because of that the regional economy could face a sharper downturn than elsewhere. On the currency front, markets didn't look kindly on the ECB's move, with the euro falling while the pound actually bounced back after initial weakness following the BoE's sharper cut. Currency markets appear to be more interested in the economic outlook than rate levels, meaning more aggressive easing is applauded (normally counter-intuitive).

DAVOD KOHL, JULIUS BAER

"Apparently the council is prepared to cut its interest rate further, but most crucially they want to wait to get the December forecast from the ECB staff which will help them to guide when to...go further."

"At least he (Trichet) acknowledged now that we are heading towards a recession which is implied by the decision which the council took. This is a first step, and I think the ECB is prepared to shift interest rates accordingly. Again, there is some insecurity in the council, the council is 20 members big, so maybe there are some more facts needed to convince the majority perhaps in terms of cutting rates more aggressively than we have seen today."