The Wall Street Journal reported, ICYMI, on a BNP Paribas Asset Management assessment saying the European Central Bank is likely to cut interest rates in the spring, before the Federal Reserve does.
Citing:
- Eurozone economy is weaker than that of the U.S.
- “It would make more sense that the ECB cuts first”
- initial ECB rate cut in March or April is “conceivable.”
- U.S. growth is still strong, the Fed can afford to wait for more signs of a slowdown
- “Inflation rates are pretty similar in the eurozone and the U.S., but there was probably a recession in the eurozone in the fourth quarter of 2023, notably in Germany,”
The Journal is gated, but if you can access it here is the link.
Powell Ueda Lagarde