- The latest data shows inflation well above 2% in December
- That will likely be the case in January as well
- ECB risks hurting its credibility if it cuts rates when inflation rises faster than first expected
It is a small suggestion that the path will not be so simple. But it is largely a given that they will cut later this month, despite his main idea. As things stand, markets are currently pricing in 25 bps back rate cuts for January and March.
This article was written by Justin Low at www.forexlive.com.
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