Europe’s Hawkish Rebel Will Be Exhausting to Maintain

Central banks in Europe wish to push again in opposition to the strengthening consensus that 2024 will probably be a 12 months of interest-rate cuts. They could be swept up by it anyway.

Buyers anticipated each the European Central Financial institution and the Financial institution of England to depart borrowing prices unchanged Thursday. On this regard, they didn’t disappoint. However their messaging struck a really totally different tone to that of Federal Reserve Chairman Jerome Powell Wednesday. Whereas U.S. officers are brazenly pivoting and have advised that charges will probably be reduce many instances subsequent 12 months—sparking euphoria within the inventory market—their friends throughout the Atlantic are sticking with a story of “greater for longer.”