Interest rates should start to go down

But ECB is in no rush to begin the process for now

Cutting rates too early would be by all means worse than waiting just a bit

There’s the risk that inflation starts to come back and then one would need to raise rates much more. This fits with the earlier remarks from his peers but markets are still sticking to their guns. A rate cut for April is still ~91% priced in at the moment. The euro has moved off earlier lows but it owes more to a decline in the dollar on…

How will this affect me?

As a consumer, a decrease in interest rates could potentially lead to lower borrowing costs for things like mortgages, personal loans, and credit cards. This could make it easier for individuals to make big purchases or investments.

How will this affect the world?

A decrease in interest rates could stimulate economic growth by encouraging businesses to invest in new projects and expand their operations. It could also boost consumer spending, which would help support overall economic activity globally.

Conclusion

In conclusion, while the prospect of lower interest rates may have some positive implications for individuals and the global economy, it is important to consider the potential risks and uncertainties associated with such a decision. The European Central Bank’s cautious approach suggests that careful consideration is being given to the potential impacts before any changes are made.