Via a Bloomberg (gated) survey of analyst expectations for the European Central Bank’s depo rate this year.
- economists surveyed see a 25bp rate cut in June, September, October and December
- bringing the deposit rate to 3%
- the December 2023 survey had 3 rate cuts expected
- meanwhile market pricing is showing around 6 cuts priced in, beginning in April
While that’s one more move than expected in last month’s survey, it’s still more conservative than the six, starting April, that investors are pricing.
Some ECB officials are pushing back:
- ECB’s Holzmann says should not count on rate cuts at all this year
- ECB’s Nagel: It is too early to talk about rate cuts
This article was written by Eamonn Sheridan at www.forexlive.com. Source