ECB to face scrutiny with new inflation forecasts amid bets on rate cut in March

Its US counterpart, the Federal Reserve, signalled that lower borrowing costs were coming in 2024

ECB chief economist Philip Lane. New inflation forecasts he helped to compile and which are unveiled on Thursday lunchtime are keenly anticipated by financial markets.

European Central Bank (ECB) president Christine Lagarde and chief economist Philip Lane will unveil new closely watched inflation forecasts at lunchtime on Thursday for the spluttering eurozone economy, but the central bank will likely push back against financial markets that are betting big for a first rate reduction as soon as three months from now.

Some ECB policymakers a few weeks ago were insisting rates could go higher again, but few financial market participants believe so, and hawks on its governing council have more recently conceded the “too high for too long” rhetoric was running out of steam, as the pace of eurozone inflation cools.