Deutsche Bank has reduced its forecast for ECB interest rate cuts in 2024 to three, compared to five previously forecast:
- expect 3 rate cuts of 25 basis points this year
- “We are updating our ECB baseline scenario to a more gradual – and uncertain – easing cycle”
DB expects 5 reductions in total, a little later for the 2 finals:
- “We are keeping the same base terminal rate, but three quarters later than in our previous vision.”
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Bloomberg announced the forecast change on Tuesday EUR time.
Lagarde also spoke in the evening on ICYMI:
- Close. of the ECB. Lagarde: we will soon lower rates, barring any big surprises
This article was written by Eamonn Sheridan at www.forexlive.com.
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