Analysis: Stage is set for ECB to be the reluctant hero in interest rate waiting game
US inflation rose more than expected in March, indicating that perhaps the Fed will have to follow Europe’s lead in cutting interest rates
Considering the cheers and whoops markets will roar when central banks finally begin to cut interest rates, one might assume that global regulators are jostling to be the first to provide the relief so desperately sought by lenders and consumers alike.
The exact opposite is true, however.
Central banks are notoriously risk averse. The prospect of cutting interest rates prematurely after months of stubborn inflation and widespread economic instability would consign them to the history books for all the wrong reasons - meaning the European Central Bank (ECB) is unlikely to be happy about it’s current spotlight.
