From Morningstar:

The European Central Bank (ECB) maintained its interest rates on Thursday, announcing there won’t be any cuts anytime soon. This led to the euro dropping against the US dollar and equities pushing upwards.

Despite the cautious tones from the ECB, financial markets are betting on rate cuts as early as this spring, with a predicted 150 basis points of cuts in 2024.

The ECB dropped indicators for rate cuts, but there are no new forecasts or information leading up to this change. The bank still expressed a commitment to lowering inflation further toward 2% as a target.

Core inflation continues to fall, with the downward trend being attributed to high base-effect-fueled energy prices.

The Eurozone’s economic future is looking fragile, especially after weak readings from Germany and the possibility of a recession. The Federal Reserve and Bank of England are set to announce their rate decisions next week, with market expectations previously leaning towards simultaneous rate cuts.



Read more: Euro Drops After ECB Holds Rates, No Signals of…