Dear Reader,

Today's overview of economic news and market action:

• Muted mood to investor sentiment for much of yesterday
• Markets were digesting weekend geopolitical developments
• On bond markets, yields were generally lower
• Currency-wise, the euro retained its softer tone
• EUR/USD edged down nearer to $1.08
• EUR/GBP moved lower within the bottom half of 85-86p
• Today’s macro highlights included Eurozone Q4 GDP and US consumer confidence (Jan)

World economy grew at a very modest pace in 2023. Subdued growth expected again in 2024, with continuing weak performance by most advanced economies in particular. Inflation fell sharply last year and further moderation in price pressures anticipated in 2024.

ECB on hold for third straight meeting

The first policy setting meeting of the ECB’s Governing Council for 2024 saw the Central Bank maintain its key deposit rate at 4%.

The Lady’s Not for Turning? 

The first policy setting meeting of the ECB’s Governing Council for 2024 saw the Central Bank maintain its key deposit rate at 
4%, as expected.