ECB cutting too soon would be worse than delaying, economists warn

Economists, investors and most officials are now in alignment over a first cut coming in June

President Christine Lagarde said on Monday that “the current disinflationary process is expected to continue” — something that should be evident in February’s reading for the 20-member bloc. (Photo by DANIEL ROLAND/AFP via Getty Images)

Lowering interest rates prematurely would be a worse mistake for the European Central Bank than reducing them too late, according to a survey of economists who see one fewer cut now in 2024.

Almost two-thirds of respondents reckon moving too hastily to reverse the barrage of rate hikes enacted to tame inflation would carry greater dangers than waiting too long — a sentiment voiced by several members of the Governing Council.