Some ECB Council members indicate inflation projections could be revised downwards

BCE noche

BancaMarch: Members of the ECB Council expect the new inflation projections published next March to be revised downwards. The current December forecasts foresee 2.7% in 2024 and 2.1% in 2025, without breaching the 2% red line until 2026 with expected inflation of 1.9%. However, the ECB indicates that these data could be more favourable, reaching the target level as early as 2025.

While this is good news, the monetary authority seeks caution to avoid fuelling expectations of cuts. With just one week to go -25 January- before the next meeting, Isabel Schnabel, a member of the Executive Board, has assured that “it is too early to talk about interest rate cuts”.

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