BNP Paribas AM says the ECB is likely to cut before the Fed – March or April possible

<p>The Wall Street Journal reported, ICYMI, on a BNP Paribas Asset Management assessment saying the European Central Bank is likely to cut interest rates in the spring, before the Federal Reserve does.</p><p>Citing:</p><ul><li>Eurozone economy is weaker than that of the U.S.</li><li>“It would make more sense that the ECB cuts first” </li><li>initial ECB rate cut in March or April is “conceivable.”
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U.S. growth is still strong, the Fed can afford to wait for more signs of a slowdown</li><li>

“Inflation rates are pretty similar in the eurozone and the U.S., but there was probably a recession in the eurozone in the fourth quarter of 2023, notably in Germany,” </li></ul><p>The Journal is gated, but if you can access it <a href="https://www.wsj.com/economy/central-banking/ecb-is-likely-to-cut-rates-before-fed-bnp-paribas-am-says-interview-833f904b" target="_blank" rel="nofollow">here is the link</a>.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.