Lower eurozone inflation fuels rate cut speculation

ECB + bridge

Inflation in the eurozone has decreased faster than expected over the past two months, fuelling speculation about when the European Central Bank will start cutting interest rates.

Official data confirmed today (November 30) that it increased year on year by just 2.4% in November, down from 2.9% in October. The ECB’s target is 2%. Tighter financial conditions and lower energy prices in 2023 have lowered inflation through the year. Eurozone headline inflation peaked at 10.6% in October 2022.

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