ECB Poised to Beat Fed to Rate-Cut Punch. Why the Timing Is Awkward.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 05 2024
0mins
Source: barron's
- European Central Bank Interest Rate Cut: Expected to cut interest rates for the first time since the pandemic due to inflation concerns.
- Global Central Banks Actions: Canada, Switzerland, and Sweden have already reduced rates this year.
- ECB Deposit Rate Reduction: A quarter-point cut expected to bring the ECB deposit rate to 3.75%.
- Euro Area Economic Indicators: Inflation at 2.6%, unemployment at a record low, and better-than-expected economic growth in Q1.
- Future Expectations: Fed cuts pushed back to the second half of the year; ECB may face challenges if it cuts rates too much ahead of the Fed.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
