"Our decisions to increase interest rates are fully taking effect as a remedy against inflation. Therefore, barring any surprises, there will be no further increases in our interest rates. The issue of a cut may come up in 2024, but not now," he said.
The Bank of France Governor's comments came as other politicians countered investor claims that the ECB would loosen policy as early as March. Earlier on Wednesday, the ECB's Slovak official Peter Kazmir said it was a dream to expect a cut in the first quarter of 2024, while his Latvian colleague Martins Kazaks said such a move would probably not be needed in the first six months.
Deutsche Bank analyst Mark Wall and others said in a report published on Wednesday that they predict that the European Central Bank will cut interest rates by a total of 150 basis points (bps) in 2024 and 50 bps in April and June next year, respectively.
Deutsche Bank analysts thought that interest rate cuts would probably start in March next year, taking into account inflation data and comments from decision-making officials.
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