In contrast to the Fed, the ECB pushed back this week against expectations that it would start to cut interest rates in early 2024. But we still think that a weak economy and continued declines in price pressures will prompt the ECB to start cutting interest rates by around April next year. The SNB is likely to start loosening at a similar time, with Norges Bank following shortly afterwards. Next week, we will get more detail on what caused the bigger-than-expected fall in euro-zone core inflation in November, and we expect to learn that the German Ifo business climate indicator edged down in December.
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