The ECB is increasingly teeing up a rate cut in the March-June window.
- We now have a credible prospect that inflation will return to 2% in 2025
- The only piece that's missing is the conviction that wage growth will adapt to lower inflation
- As soon as that piece of the puzzle falls in place, we will be able to lower interest rates a bit
The eurozone is already in recession or very close. They should be cutting already.
