- Latest data shows inflation well above 2% in December
- That will likely also be the case for January
- ECB risks hurting its credibility if it cuts rates when inflation rises faster than initially thought
It's a slight suggestion that the pathway isn't going to be as straightforward. But it's pretty much a given that they will be cutting later this month, despite his headline remark. As things stand, markets are pricing in back-to-back 25 bps rate cuts for January and March currently.
