The ECB faces a delicate balance, with improved consumer confidence potentially reducing rate-cut expectations, but recession fears maintaining pressure for accommodative policies. Uncertainty about December’s ECB interest rate decision is evident as markets give a 50% chance of a 50 bps December rate cut.
Expert Views on the German Economy and ECB Rate Path
Pictet Wealth Management Head of Macroeconomic Research Fred Ducrozet commented on the German economy and the need for further ECB policy support, stating,
“The nail in the coffin? Job cuts deepen in Germany, and pricing power wanes. The ECB will be under growing pressure to move below neutral, and fast.”
Oliver Rakau, Chief Germany Economist at Oxford…
Read More
