| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 07:00 | United Kingdom | PSNB, bln | December | -11.80 | -14.1 | -17.81 |
EUR traded mixed against other major currencies in the European session on Wednesday as investors digested the latest remarks from several officials of the European Central Bank.
A handful of the ECB representatives, including its president Christine Lagarde, spoke to the media in Davos. Lagarde stated that the ECB policymakers are on the path of regular and gradual rate decreases and they do not see themselves behind the curve. She noted that the disinflationary process continues and the ECB is confident that inflation will be at its target over the course of 2025.
Meanwhile, the ECB’s Governing Council member Klaas Knot said that he is pretty comfortable with markets’ bets for interest-rate cuts from the ECB in January and March. “Further than that, I find it too early to comment,” he added. The official also expressed confidence that the ECB will return to target in the remainder of the year.
His colleague Jose Luis Escriva said that a further rate cut of 25 basis points at the ECB’s January 29-30 meeting is the most likely scenario.
The ECB’s Governing Council member Yannis Stournaras supposed that interest rates in the Eurozone should be close to 2% by the end of the year.
Another ECB’s policymaker Francois Villeroy de Galhau noted that there is a plausible scenario that the ECB’s policy rate will be reduced to around 2% by this summer.
Today’s comments of the ECB’s representatives reinforced bets on continuing the central bank’s rate-cutting cycle when its officials gather in Frankfurt next week, following four reductions in 2024. Overall, four rate decreases are expected from the central bank of the Eurozone currency union this year.