Central Banks
ECB’s Lagarde Squeezed as Markets Boost 2024 Rate-Cut Bets
- Memories of 2021 evoked with forecast round at key juncture
- As traders bet on rate cuts, officials show no sign of rushing
This article is for subscribers only.
The European Central Bank’s forecasts and any accompanying messaging are about to take prominence as President Christine Lagarde weighs how far to push against market wagers on interest-rate cuts.
With rapidly weakening inflation, a feeble economy, and one hawkish policymaker changing tack, traders are heaping bets on a reduction as soon as March. They’re now seeing the rate falling to 2.5% by the end of 2024; just last week, they envisaged borrowing costs staying above 3%.