Central Banks
ECB to Clash With Markets Over Rate-Cut Timing, Survey Shows
- Expectation of first reduction moved to June from September
- Majority sees earlier end to reinvestments of pandemic bonds
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The European Central Bank won’t lower interest rates as soon or as quickly as investors think, according to a Bloomberg survey of economists that suggests policymakers will push back against current market bets.
Officials will maintain borrowing costs for a second meeting on Dec. 14 and keep them there until June, when they’ll make the first of three quarter-point cuts in 2024, respondents said. They’d previously anticipated an initial move in September.