Not many economists believe that the European Central Bank (ECB) will cut interest rates again at its upcoming interest rate meeting next week. This is clear after Eurostat published preliminary figures for inflation in the eurozone in August on Tuesday.
The figures show that prices in the countries that use the euro as their currency rose by 2.1 percent on an annual basis. The so-called core inflation, which does not include prices for energy and unprocessed raw materials, was 2.3 percent. The figures are as expected and are well in line with the ECB's target of keeping inflation at around two percent.
- Interest rates have fallen to a level where there is a danger that further interest rate cuts will push inflation up again. This means that the ECB will soon have no more interest rate cuts up its sleeve. The ECB will probably only make one small interest rate cut, and then the bottom has been reached for this round, says Allan Sørensen, chief economist at the Confederation of Danish Industry.
Tore Stramer, chief economist at the Confederation of Danish Industry, is of the same opinion.
- With the economic development we are seeing now - including an expected German fiscal policy boost next year - we assess that there will hardly be any more easing for the time being, says Tore Stramer, chief economist at the Confederation of Danish Industry.
However, he also keeps the door open for another interest rate cut later this year.
/ritzau/
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