In contrast, the financial market experts' sentiment regarding the economic development of the eurozone witnessed a slight decrease in January 2024. The indicator for the eurozone fell by 0.3 points from the previous month, now standing at 22.7 points. However, the situation indicator for the eurozone showed improvement, increasing by 3.4 points to reach minus 59.3 points, as per ZEW.
“Economic expectations for Germany have improved again. This is because now more than half of the respondents assume that the ECB will make interest rate cuts in the first half of the year. There are even more pronounced shifts in US interest rate expectations. More than two-thirds of the respondents predict interest rate cuts by the US Federal Reserve in the next six months. The rise in inflation in Germany and the eurozone in December thus has no impact on the monetary policy expectations of the respondents,” said ZEW president Professor Achim Wambach.
ALCHEMPro News Desk (DP)
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