News summary

European Central Bank confirmedwintergamesinsaudiarabiaAs inflation risks decrease, adjusting interest rates becomes a policy shiftwintergamesinsaudiarabiaSignal that the market generally expects interest rate cuts.

Newsletter text

[The European Central Bank signals policy adjustment, Panetta hints that interest rate cuts have become consensus]

New developments came from Europe. European Central Bank Executive Committee Panetta pointed out in a speech that inflationary pressures were gradually decreasing. On this basis, the bank has appropriate conditions for adjusting monetary policy and is expected to adjust interest rates. Panetta further made it clear that lowering interest rates is now a broad consensus.