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欧洲央行副行长:降息路径比幅度更重要

The Vice President of the European Central Bank: The path of interest rate cuts is more important than the magnitude.

Zhitong Finance ·  Nov 22, 2024 21:30

ECB Vice President Luis de Guindos said that the ECB is clearly on the path of cutting interest rates, but the extent of interest rate cuts at every monetary policy meeting is not that important.

The Zhitong Finance App learned that ECB Vice President Luis de Guindos said that the ECB is clearly on the path of cutting interest rates, but the extent of interest rate cuts at every monetary policy meeting is not that important. He also added that wage growth in the Eurozone will slow down next year, and inflation is expected to move towards the ECB's 2% target.

Luis de Guindos said, “If our inflation forecast for next year does become a reality, then the path of monetary policy is clear. The question of whether to cut interest rates by 50 basis points or 25 basis points is less important anymore.”

Outsiders generally expect the ECB to cut interest rates for the fourth time since June at the December policy meeting. The three interest rate cuts carried out by the ECB since this year have all been 25 basis points. Policymakers must decide whether to speed up the pace of easing in the face of increased economic headwinds.

On Friday, due to the unexpected contraction of Eurozone's November PMI data, traders increased their bets on the ECB cutting interest rates by 50 basis points next month. It is expected that the possibility of cutting interest rates by 50 basis points at that time will rise to 50% from about 15% on Thursday.

However, Luis de Guindos also said that due to uncertainties such as heightened trade tension and global conflict, officials should not act hastily. Speaking about Trump's threat to raise tariffs on imported goods, Luis de Guindos said the target countries would respond with their own rate hikes, leading to a “vicious cycle of trade wars.”

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