The ECB faces its first meeting of 2024, during which it will cut interest rates

Currently the eurozone is going through a moment of economic weakness, after the crisis Gross Domestic Product (GDP) fell by 0.1% in the third quarter, while the inflation has been restored, just like the ECB.

The eurozone ended 2023 with inflation of 2.9%, up five-tenths between November and December, although the underlying – which excludes energy and fresh food prices as they were more volatile – fell by two-tenths , to 3.4%, according to data from the Community Statistics Office Eurostat.

The meeting could serve that purpose ECB mark what the path of the descents will be like afterwards Lagarde open to the possibility of a rate cut starting in the summer.

“In terms of communications, it is likely that the ECB say clearly that the path of interest rates discounted in the markets is still too aggressive,” said the chief economist for Europe T. Rowe Price, Tomasz Wieladeck.

Although since Ibercaja point out that the market has postponed its downward expectations, but continues to maintain a very aggressive trajectory, with a rate cut of around 140 basis points, with declines starting in April to end the year at around 3%, according to the firm investments PIMCO.

Source: El heraldo

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