ECB faces further scrutiny this week on timing of first rate cut

Consumers in Ireland and the US appear to anticipate better news in 2024 as energy, grocery, and petrol price inflation eases, the latest Credit Union Consumer Sentiment Survey suggests

Economist Austin Hughes said Irish consumers were in their most buoyant mood for two years this month. 

Pressure on the European Central Bank (ECB) to start cutting interest rates before the summer could likely intensify as its US counterpart, the Federal Reserve, may signal an early date for its first rate reduction, when it meets later this week.

It comes as consumers in Ireland and the US appear to be anticipating much better inflation news in 2024, with their confidence increasing sharply in January as energy, grocery, and petrol price inflation falls, according to the latest Credit Union Consumer Sentiment Survey.