RSS ECB's Holzmann: A rate cut is not a foregone conclusion for me at all

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 RSS ECB's Holzmann: A rate cut is not a foregone conclusion for me at all

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  • Latest data shows inflation well above 2% in December
  • That will likely also be the case for January
  • ECB risks hurting its credibility if it cuts rates when inflation rises faster than initially thought

It's a slight suggestion that the pathway isn't going to be as straightforward. But it's pretty much a given that they will be cutting later this month, despite his headline remark. As things stand, markets are pricing in back-to-back 25 bps rate cuts for January and March currently.

This article was written by Justin Low at www.forexlive.com.
 
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