Further Marked Fall in Inflation Needed for Rate Cuts
by AIB Treasury Economic Research Unit
- Further significant declines in headline and core inflation rates look to be in store this spring virtually everywhere, as large price increases a year earlier drop out of the annual comparison.
- There is a risk, though, that rates may not be cut as quickly as markets expect, especially in the Eurozone.
- Indeed, central banks have been sounding words of caution in relation to market expectations for extensive rate cuts in 2024.
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