Gold Finance reported that strategists at Barclays and Danske Bank say the European Central Bank's pace of interest rate cuts may be slower than the market expects. Strategists say the ECB may cut rates quarterly rather than at each meeting from December to June.

Danske Bank said the ECB will target sticky inflation, while Barclays believes the ECB may choose a lower terminal rate, achieving it through a longer period of steady easing. "The market may once again need to more seriously consider the possibility of the ECB only choosing quarterly interest rate cuts next year," wrote Rohan Khanna, head of euro rate strategy at Barclays. Danske Bank Chief Strategist Piet Christiansen pointed out that high wages leading to increased domestic inflation pressures are the reason for policymakers to cut rates only once per quarter. The bank expects the ECB to cut rates by 25 basis points each quarter until September next year.