No Urgency from ECB Despite Weakening Eurozone Outlook
PGIM Fixed Income's Deputy Head of Global Economics and Chief European Economist, Katharine Neiss, PhD, reacts to the European Central Bank's (ECB) January Monetary Policy Meeting, which saw the Bank cut its main policy rate by 25 bps to 2.75%, as expected. Despite a weaker-than-expected macroeconomic outlook in the euro area and the belief that monetary policy remains restrictive, the ECB showed no urgency to reduce rates further. Katharine highlights that if economic conditions worsen, the ECB might consider more aggressive rate cuts in the future but for now, her rate forecast remains unchanged.