Goldman Sachs forecasts first rate cut from European Central Bank (ECB) in April 2024,

I posted late last week on:

• Goldman Sachs is forecasting the first ECB rate cut in Q2 of 2024 (vs. Q3 prior forecast)

GS have refined the Q2 call, now nominating the April European Central Bank meeting for the first rate cut. Analsyts expect the ECb will cut by 25bp in April 2024 then by 25bp at each meeting for the balance of the year:

“We view April as somewhat more likely given our expectation for firmer growth, the ongoing strength in wage growth and more data to confirm the slowdown in underlying inflation”

• expect the ECB’s deposit rate to reach 2.25% by early 2025 (its currently 4%)

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European Central Bank monetary policy meetings for 2024:

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