Central Banks
ECB Cutting Too Soon Would Be Worse Than Delaying, Survey Shows
- Bloomberg survey sees three reductions in 2024, four in 2025
- Respondents expect bond portfolio as part of new framework
With inflation receding and monetary officials in the US and the UK also gearing up to ease policy, respondents forecast three quarter-point reductions by the ECB this year.
Photographer: Angel Garcia/BloombergThis article is for subscribers only.
Lowering interest rates prematurely would be a worse mistake for the European Central Bank than reducing them too late, according to a survey of economists who see one fewer cut now in 2024.
Almost two-thirds of respondents reckon moving too hastily to reverse the barrage of rate hikes enacted to tame inflation would carry greater dangers than waiting too long — a sentiment voiced by several members of the Governing Council.