“The #ECB is going to cut rates with an accumulated inflation of 18.4% since 2019 and rising monthly #CPI”
After you are read the sentence above take a breath, close your eyes and then read it again to fully taste the complete nonsense the #ECB fell into t.co/S6SP1v2DfZ
— JustDario 🏊♂️ (@DarioCpx) March 27, 2024
ECB to cut rates in June, but economists split on risk around timing
BENGALURU, Feb 29 (Reuters) – The European Central Bank will first cut interest rates in June, according to a near two-thirds majority of economists in a Reuters poll, though they were split on the chances of the cut coming earlier or later than they expected.
Inflation, which the ECB targets at 2.0%, moderated to 2.8% in January from a peak of 10.6% in October 2022 and is expected to drop further. But policymakers have made clear they are not yet ready to consider cutting rates, even as growth falters.
…
“There is always a risk that as soon as the economy recovers just a tiny bit, inflation will come back so that argues against aggressive rate cuts,” added ING’s Brzeski.
Despite a strong consensus around the first rate cut, economists were divided on the risks around their forecasts. When asked what was more likely around the timing of the first reduction, a roughly 55% majority of respondents, 17 of 31, said earlier than they expect. The rest said later.
www.reuters.com/markets/europe/ecb-cut-rates-june-economists-split-risk-around-timing-2024-02-29/
Inflation Rate in Spain increased to 3.20 percent in March from 2.80 percent in February of 2024.t.co/dY6uE6T2Bo pic.twitter.com/Xzl2cakDrz
— TRADING ECONOMICS (@tEconomics) March 27, 2024