During his scheduled appearance on Wednesday, European Central Bank (ECB) Vice President Luis de Guindos said that “the rapid pace of disinflation that we observed in 2023 is likely to slow down this year.”
Additional takeaways
Disinflation process to pause temporarily at the beginning of the year.
Growth developments are more disappointing.
Incoming data indicate that future remains uncertain, prospects tilted to the downside.
Soft indicators point to an economic contraction in December too, confirming the possibility of a technical recession in the second half of 2023 and weak prospects for the near term.
Future ECB decisions are to continue to be data-dependent.
Market reaction
At the press time, EUR/USD Is defending minor bids at around 1.0940, up 0.07% on the day.
Source: https://www.fxstreet.com/news/ecbs-de-guindos-rapid-pace-of-disinflation-likely-to-slow-down-in-2024-202401100830