European Central Bank policymakers: There are ample reasons to cut interest rates in December. Future policies may shift towards stimulus.
①ECB board member Villeroy de Galhau stated that the central bank may need to cut interest rates to stimulate economic growth; ②He emphasized that officials should keep all options open for the speed and extent of interest rate cuts in the coming months; ③Villeroy de Galhau said that the worst period of inflation in the euro area is over, and inflation may reach the target in early 2025, recommending policymakers to adopt a more forward-looking communication approach.
Germany, Spain Inflation Data Offers Room for Accelerated ECB Rate Cuts -- Market Talk
Germany's inflation unexpectedly remained stable in November, supporting the European Central Bank's continued interest rate cuts.
The German Federal Statistical Office stated on Thursday that the harmonized consumer price index (HICP) grew by 2.4% year-on-year in November.
Spain's inflation soared to its highest level since August, and the new trend of Eurozone CPI will be announced on Friday.
Spain's inflation rate has accelerated for the first time since August, reaching 2.4%.
European Central Bank board member Wunsch: If inflation slows more than expected, interest rates will be gradually lowered and the terminal interest rate may approach 2%.
Pierre Wunsch, a member of the European Central Bank's Governing Council, stated in an interview that as inflation eases, the European Central Bank may continue to cut interest rates, potentially bringing them down to levels "close to 2%".
The European Currencies Regain Their Composure – DBS