The ECB will not be able to cut interest rates too much – Commerzbank
Source Fxstreet
Economists at Commerzbank expect the European Central Bank (ECB) to find hurdles to cut interest rates.
Difficult for the ECB to cut interest rates significantly
Even if inflation has shown a promising downward trend in recent months, the remaining path to the 2% target is likely to be bumpy. In any case, structural factors such as ongoing de-globalisation and the energy transition should drive up costs for companies and ultimately consumer price inflation.
If the effects of a particularly tight labour market also take effect, this is a further argument for upside risks and inflation settling at a higher level. This should make it difficult for the ECB to cut interest rates significantly, as many expect.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Bitcoin (BTC) price continues to trade in green above $91,500 at the time of writing on Thursday after rebounding from the key support level.
Bitcoin holds steady above $90,000 as traders eye $100,000, buoyed by Thanksgiving market lull.
S&P Slashes Vanke to Deep Junk, Warning of 'Unsustainable' Debt WallS&P has cut China Vanke’s rating to CCC- and warned its debt is “unsustainable” as the developer faces an 11.4 billion yuan maturity wall, seeks to delay a 2 billion yuan bond repayment and sees its securities plunge, stoking fresh worries that China’s property sector could slide back into crisis despite state ties.
S&P has cut China Vanke’s rating to CCC- and warned its debt is “unsustainable” as the developer faces an 11.4 billion yuan maturity wall, seeks to delay a 2 billion yuan bond repayment and sees its securities plunge, stoking fresh worries that China’s property sector could slide back into crisis despite state ties.
Gold (XAU/USD) attracts fresh buyers during the Asian session on Friday and climbs to a two-week high, with bulls now eyeing to reclaim the $4,200 mark amid dovish US Federal Reserve (Fed) expectations.
Silver remains steady near $54.00 after rejection at $54.40 area.
