What to expect from the European Central Bank: Rate cuts and inflation predictions

<p>Expectations of what's to come from the European Central Bank next week and into 2024 via the most recent poll of analysts by Reuters.</p><ul><li>All 90 economists in the poll said the deposit rate would stay at 4.0% at the European Central Bank meeting on December 14</li></ul><p>Expectations further out:</p><ul><li>eurozone economy to enter a short and shallow winter recession</li><li>51 of 90 predict at least one
rate cut sometime before the July ECB meeting</li><li>medians show a 25 basis point cut in each quarter of next
year starting Q2, which compares with market pricing is for around 150 basis points of cuts starting in March</li><li>these predicted 75 basis points worth of
cuts from the ECB is less than that expected from the Fed (according to an earlier survey by Reuters for Fed expectations)</li><li> Headline inflation predicted to decline over the coming
quarters but still remain above the ECB's 2% target until at
least 2025</li></ul>

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