Moody's Analytics/Kovar: Those Seeking a 50 Basis Point Cut from the ECB Have More Ammunition for Their Case

Moody's Analytics economist Kamil Kovar stated that the decline in service inflation in the Eurozone could increase the likelihood of a bolder half-point interest rate cut at the European Central Bank's meeting next month. Kovar argued that service prices showed a slightly less robust increase in November compared to October, and this occurred in an unfavorable environment. He also mentioned, "Members of the ECB Governing Council who favor a reduction of 50 basis points instead of 25 now have more ammunition for their case. The tide has turned significantly."