Central banks should continue to oppose “the idea of ​​premature interest rate cuts,” explains Ibori Managing Director – Executive Summary

This week will be marked by economic data, especially the European Central Bank's monetary policy meeting, which will be held next Thursday.

January business activity PMIs in major economies will be released today, figures of particular importance in the Eurozone, given the lack of other reliable indicators in time.

On Friday, US December PCE inflation will serve as another important reference for markets. Last week, we once again saw from data release that the US economy was strong, surprising markets and FOMC members who had expected an early start to interest rate cuts.

“We believe the data that will be released will continue to allow central banks to push back against the idea of ​​early interest rate cuts,” David Brito, managing director of Ebury, tells Executive Digest.

Ibori explains that euro zone industrial production data remains disappointing, partly due to weak Chinese growth.

“However, ECB officials continued to contradict market expectations for strong and early interest rate cuts, suggesting that inflation has not been beaten and that interest rate cuts should wait until the summer. They explain that the ECB meeting this week provides the central bank An opportunity to clarify his position and what he needs to see in the data before he can start cutting interest rates.