When the European Central Bank (ECB) suggested in the fall that it had reached the peak of rate hikes to combat inflation, the markets got excited, betting on very rapid cuts from the spring.
The ace.
The Governing Council, meeting in Frankfurt since Wednesday, is expected to maintain the status quo, with a deposit rate of 4%.
ECB President Christine Lagarde is expected to once again calm expectations, based on new growth and inflation forecasts for the euro zone.
At 2.6% in February, after 2.8% in January, the average price increase in the euro zone nevertheless continues to decline.
“
This is a strong argument to support the thesis that the medium-term inflation outlook is indeed converging towards the 2% objective and therefore that the ECB could already lower its key rates
,” analyzes Eric Dor, economist at the 'Ieseg.
However, underlying inflation - excluding energy and food - still remains at 3.3%.
And…
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