First move ?

As second theme of our quarterly house-view we expressed our opinion that central banks arrive to end of their rate hiking cycle. Question now becomes when central bankers are going to cut rates. Here, the Fed Chair Jerome Powell was as clear a central banker can be yesterday stating that a March cut was “not the most likely base case or the base case.” But what about Europe ? The German inflation numbers published yesterday fell to 2.9% for CPI and 3.4% for the core CPI. It could be time for the ECB to start to do the first move.