FRANKFURT (Dow Jones) – Despite falling inflation, KfW chief economist Fritzi Köhler-Geib does not expect rapid inflation Interest rate cut by the European Central Bank (ECB). Many investors were already expecting an initial reduction in key interest rates in the spring. “But I think that’s unrealistic based on the current state of information,” Köhler-Geib told Spiegel. The expectations of the stock markets monetary policy are too exuberant. A look at the past shows that inflation can be very stubborn. A first interest rate step by the US Federal Reserve Bank is probably expected in the summer. “It will probably be a little later for the ECB.” The economist expects that inflation developments and monetary policy will cause strong price movements on the stock markets in 2024.
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January 06, 2024 10:48 ET (15:48 GMT)