Goldman Says ECB to Cut Interest Rates Sooner Than Expected
- First quarter-point reduction was previously seen later
- Change in view follows drastic slowdown in inflation data
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The European Central Bank won’t wait as long as previously forecast to cut its interest rate, with the first reduction now anticipated in the second quarter, Goldman Sachs economists said.
The US investment bank changed its prediction in a report on Thursday, hours after data showed that inflation in the region weakened markedly toward the 2% goal targeted by policymakers. Economists including Jari Stehn previously expected a move in the third quarter.