Goldman Sees ECB Rate Cut in April on Stronger Inflation Retreat

The European Central Bank will cut interest rates in April as inflation slows more forcefully than officials currently expect, according to analysts at Goldman Sachs.

“We now see prospects for substantially faster disinflation in the euro area,” economists led by Jari Stehn said Thursday in a report to clients. While a change in March can’t be excluded, “we view April as somewhat more likely given our expectation for firmer growth, the ongoing strength in wage growth and more data to confirm the slowdown in underlying inflation.”