ECB and BOE Resist Calls for Swift Rate Cuts Despite Slowing Inflation
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ECB officials are pushing back against market expectations of swift interest rate cuts despite falling inflation. They warn cutting too soon could spark another inflation wave.
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Multiple ECB policymakers said it's too early to talk about rate cuts in 2023, with one saying not to bank on cuts at all in 2024.
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BOE wage growth data showed pressures may be easing, but some economists say the central bank can wait longer before cutting rates as markets expect.
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Sterling eased lower following the UK wage data, with potential for further declines if Wednesday's CPI data shows a further fall.
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ECB and BOE policymakers are challenging investor optimism about the potential pace and timing of rate cuts.