European Central Bank suggests rate cuts could come soon

<img width="250" height="167" src="https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-European-Central-Bank-suggests-rate-cuts-could-come-soon-5845431169-iStock-1255241088-250×167.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-European-Central-Bank-suggests-rate-cuts-could-come-soon-5845431169-iStock-1255241088-250×167.jpg 250w, https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-European-Central-Bank-suggests-rate-cuts-could-come-soon-5845431169-iStock-1255241088-700×467.jpg 700w, https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-European-Central-Bank-suggests-rate-cuts-could-come-soon-5845431169-iStock-1255241088-768×512.jpg 768w, https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-European-Central-Bank-suggests-rate-cuts-could-come-soon-5845431169-iStock-1255241088-120×80.jpg 120w, https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-European-Central-Bank-suggests-rate-cuts-could-come-soon-5845431169-iStock-1255241088-245×163.jpg 245w, https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-European-Central-Bank-suggests-rate-cuts-could-come-soon-5845431169-iStock-1255241088-500×333.jpg 500w, https://www.leaprate.com/wp-content/uploads/2024/01/FIN-LP-European-Central-Bank-suggests-rate-cuts-could-come-soon-5845431169-iStock-1255241088.jpg 1254w" sizes="(max-width: 250px) 100vw, 250px" /><p>The reductions come at a time when tensions between ECB officials and the market are high. Investors, however, continue to predict rate cuts as soon as March/April this year; policymakers are opting for what they term a more realistic timeframe of mid-year. Market and authority attention will now be fixed on Chief Economist Philip Lane, who is scheduled to speak on the matter late Friday afternoon.</p>
<p>Despite inflation data remaining below 3% at the beginning of January, it seems that the ECB is waiting for wage increase data for Q1 and, only then will cuts begin to take shape but, market sentiment remains hopeful considering an uptick in inflation during December 2023 couldn’t push the percentage higher than 3%.</p>
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<p>Lagarde dismissed the notion of a serious recession in Europe and declared the worst part of the fight against <a href="https://www.leaprate.com/news/uk-inflation-drops-and-analysts-predict-rate-cuts-in-2024/" target="_blank" rel="noopener">inflation</a> over. She emphasized the role of salaries in this context, noting that negotiations and collective-bargaining agreements are driving increases above inflation figures. Lagarde anticipates a gradual catch-up phase over two or three years.</p>
<p>As well as announcing potential rate cuts in the near future, Lagarde also dismissed the notion of a serious eurozone recession, suggesting that the worst battle against inflation has been won.</p>
<p>The post <a rel="nofollow" href="https://www.leaprate.com/news/european-central-bank-suggests-rate-cuts-could-come-soon/">European Central Bank suggests rate cuts could come soon</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>