© Reuters. FILE PHOTO: A view of the European Central Bank (ECB) headquarters in Frankfurt, Germany March 16, 2023. REUTERS/Heiko Becker/File Photo
FRANKFURT (Reuters) – Inflation expectations among euro zone consumers held steady last month while the outlook for economic growth worsened, the European Central Bank said on Tuesday, based on its October consumer expectations survey.
The ECB raised interest rates to a record high earlier this year to dampen price pressures but signalled steady rates for the next several months, suggesting that its next move would be a cut.
Median expectations for inflation over the next 12 months held at 4.0,% while for three years ahead stood at 2.5%, both above the ECB’s own 2% target.
Economic growth expectations for the next 12 months were meanwhile downgraded to -1.3% from -1.2% a month earlier.
Markets already see an ECB rate cut in March and see a total of 143 basis points of reduction in 2024.
