Data indicates persistent inflationary pressures in the eurozone, particularly in the services sector, as the European Central Bank (ECB) maintains a cautious approach to interest rate cuts to address upcoming economic challenges. Meanwhile, markets are closely monitoring the potential impact of US economic policies on the global economy in 2025.
Haig Bathgate, director at Callanish Capital, stated that the ECB is unlikely to be concerned as long as inflation figures remain within general expectations. He also noted that European markets have become more stable regarding interest rate trends compared to the UK, where gradual rate cuts from 3% to 2% are anticipated this year.