Bigger-than-expected fall opens the door for ECB rate cuts as soon as June.
03 April 2024
The slow descent in inflation across the eurozone continues, with today’s flash CPI estimate at 2.4% year-on-year for March, lower than the 2.5% forecast, compared to the previous month’s reading of 2.6%, thanks to declining energy costs. At this rate of slowing an interest rate cut by the European Central Bank in June is now a firm favourite as inflation zeroes in on the official 2% target. Core inflation came in less than expected too, at 2.9% year-on-year. With the likelihood of the same slowing in wage growth numbers over the next few months then the chances of four cuts being implemented in 2024 are rising.
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The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.