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ECB Rate Cut Anytime Soon Is ‘Highly Improbable,’ Nagel Says
A cut in European Central Bank interest rates won’t be happening in the near future, according to Bundesbank President Joachim Nagel. Borrowing costs “have to remain at a high level for a sufficient period,” Nagel said in a speech in Frankfurt on Friday. “While it is impossible to predict exactly how long this period will be, it is highly improbable that it will end anytime soon.” While Governing Council members have emphasized that the deposit rate will remain at 4% well into 2024, money markets are betting on a reduction as soon as April and now price in a full percentage point of rate cuts next year. ... (full story)