As expected the market, The ECB announces the fourth decrease of consecutive types of 25 basic pointswhich is the fifth cut since June, leaving the price of money at 2.75%. With this movement, the Eurobanco moves away from the Fed that this week decided to keep the price of money in the US unchanged.
The divergence between both entities is understandable. To begin with, the ECB is already possible that inflation reaches this year Your 2% goal. But in addition, the economic situation is very different in both regions. The US grew to 2.8% in 2024while France and Germany have the GDP of the Eurozone to An increase of only 0.7%. It is therefore logical that Eurobanco follows your own path and recess types To stimulate the European economy.
#Logic #divergence #ECB #Fed
