Deutsche Bank says ECB will cut rates in October after inflation drop

LONDON (Reuters) - Deutsche Bank on Tuesday said it now expects the European Central Bank to cut interest rates again in October, after steeper-than-expected falls in inflation across the euro zone in September.

"Following an even deeper dip in September HICP inflation than we were expecting, we are accelerating the next ECB-25 bp (basis point) rate cut from December to October," Deutsche Bank analysts, led by chief economist Mark Wall, said in a note on Tuesday.

They also said a 50-bp cut in December could be a close call if the recent weaker growth and inflation trends continue. Euro zone-wide data will be released at 0900 GMT (1100 CET) and is expected to show year-on-year inflation fell to 1.8% in September, below the ECB's 2% target.

(Reporting by Harry Robertson; Editing by Amanda Cooper)

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