Victory against inflation is in sight.The inflation target may be reached in early 2025.Our interest rates should clearly go to the neutral rate.We still have significant room to remove the restrictive stance of our monetary policy.I wouldn’t exclude going below the neutral rate in the future. There is every reason to cut on December 12th, optionality should remain open on the size.For the following meetings, we shouldn’t exclude any of them for possible cuts.
This article was written by Giuseppe Dellamotta at www.forexlive.com.