2023-12-07 07:51:00
Villeroy told French newspaper La Depeche du Midi in an interview published on Wednesday that “disinflation is progressing faster than we thought.” For this reason, if there are no shocks, there will be no new interest rate hike. The question of a rate cut might arise in 2024, “but not now,” he added.
Villeroy is also France’s central bank chief. ECB Director Isabel Schnabel said in a Archyde.com interview published on Tuesday that the latest inflation figures made another interest rate hike unlikely. There is already speculation on the stock market that the ECB might possibly lower interest rates as early as the first quarter of 2024.
Deutsche Bank is expecting larger interest rate cuts from the European Central Bank (ECB) next year than ever before. “Against the background of the latest inflation data and the tone of official comments, we fear that we have been too cautious,” wrote the economists of the German banking leader in a study on the ECB published on Wednesday. Economists now expect that the Euro Central Bank will reduce interest rates by a total of 1.50 percentage points in 2024. Most recently they had expected 1.00 percentage points. They expect the first step downwards in April. But they don’t consider a reduction as early as March to be entirely out of the question.
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