Central Banks
When Will ECB Cut Interest Rates? Not Soon, Pictet Says
A sign outside the European Central Bank headquarters in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank won’t cut interest rates until the final quarter of 2024 because price pressures will prove persistent, according to Sabrina Khanniche of Pictet Asset Management.
“If we look at inflation now, currently it has declined quite substantially, but we expect inflation to increase from there,” Khanniche, who is a senior economist, told Bloomberg Television on Wednesday. “Because with a peak of energy prices were reached last year, so inflation should continue to ease but very gradually because of the persistence of inflation.”