On December 2nd, Jinshi Data reported that HSBC economists Balboni and Wells said that the European Central Bank may abandon its more restrictive policy inclination at the next meeting and instead send a signal of a more open attitude towards future interest rate cuts. This will lay the foundation for further interest rate cuts next year. However, given that policymakers have recently called for a gradual approach, a significant 50 basis point interest rate cut in December seems unlikely. However, if economic data continues to disappoint or inflation rates decline faster in early 2025, it may mean that the European Central Bank will accelerate interest rate cuts.
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HSBC: European Central Bank may hint at openness to interest rate cuts in 2025 this month
On December 2nd, Jinshi Data reported that HSBC economists Balboni and Wells said that the European Central Bank may abandon its more restrictive policy inclination at the next meeting and instead send a signal of a more open attitude towards future interest rate cuts. This will lay the foundation for further interest rate cuts next year. However, given that policymakers have recently called for a gradual approach, a significant 50 basis point interest rate cut in December seems unlikely. However, if economic data continues to disappoint or inflation rates decline faster in early 2025, it may mean that the European Central Bank will accelerate interest rate cuts.