Bank of America expects the European Central Bank (ECB) to begin cutting interest rates in June 2024, following the Federal Reserve (March 2024), with two additional cuts in September and December.

These forecasts were presented today by Bank of America’s Chief Economist for Europe, Ruben Segura Cayuela, and the entity’s Global Head of Raw Materials and Derivatives, Francisco Blanch.

The North American Bank expects a slight slowdown in the global economy in 2024, with uneven performance in different areas and with declining inflation and interest cuts in developed countries.

“The asymmetric growth dynamic is likely to persist, but we see a more uniform disinflation dynamic, which will pave the way for most central banks to cut interest rates,” Bank of America says in its report on Europe.

The banking entity expects the euro area to grow by 0.5% in 2024 and 1.2% the following year.

Bank of America also stated that risks are “plentiful, especially in the short term,” including those resulting from the geopolitical situation.

Regarding inflation, it is expected to reach 2.6% in 2024 and 1.4% in 2025 in Europe.

The North American bank believes the ECB will start cutting interest rates in June 2024, with two more cuts in September and December this year.

Segura Cayuela specified, according to the EFE agency, that the first cut in interest rates of the European Central Bank could be brought forward to April if inflation and growth slow more quickly than expected.