U.S. Dollar Steadies Near October Lows as Rate Cut Expectations Keep Markets on Edge 
Chinese Robotaxi Stocks Rally as Tesla Boosts Autonomous Driving Optimism 
New Zealand Business Confidence Hits 30-Year High as Economic Outlook Improves 
BOJ Poised for Historic Rate Hike as Japan Signals Shift Toward Monetary Normalization 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Asian Markets Rebound as Tech Rally Lifts Wall Street, Investors Brace for BOJ Rate Hike 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
U.S. Stock Futures Slip After CPI-Fueled Rally as Markets Weigh Economic Uncertainty 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
Japan Inflation Holds Firm in November as BOJ Nears Key Rate Hike Decision 
Gold and Silver Prices Dip as Markets Await Key U.S. Economic Data 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
Oil Prices Climb on Venezuela Blockade, Russia Sanctions Fears, and Supply Risks 
Asian Stocks Edge Higher as Tech Recovers, U.S. Economic Uncertainty Caps Gains 
Austan Goolsbee Signals Potential for More Fed Rate Cuts as Inflation Shows Improvement 
ECB Reassesses Interest Rates as Economic Recovery Stalls
The European Central Bank (ECB) is discussing whether to cut interest rates below neutral levels to stimulate the Eurozone's faltering economy, according to multiple anonymous sources. The debate highlights growing concerns among ECB policymakers about persistently low inflation and sluggish growth.
Policy Shift Under Consideration
While the ECB has been reducing rates this year to maintain a neutral policy—neither stimulating nor restricting growth—the conversation has shifted. Some policymakers now argue that deeper cuts may be required to avoid inflation undershooting the ECB’s target, a scenario reminiscent of the pre-pandemic years.
Economic Stagnation and Inflation Risks
The Eurozone’s economic outlook has deteriorated, with inflation well below earlier forecasts. This has sparked discussions among a small but growing group of ECB officials who believe the central bank is "behind the curve." They suggest that stronger rate cuts could prevent prolonged economic stagnation and help stabilize inflation.
Calls for Policy Reevaluation
Some policymakers advocate revisiting the ECB’s current "meeting-by-meeting" approach, calling for clearer guidance on potential rate cuts. Lithuanian central bank head Gediminas Simkus has publicly expressed concerns, warning that entrenched disinflation might require lowering rates below the neutral level.
Uncertain Neutral Rate
The concept of a neutral interest rate remains uncertain, with estimates ranging between 2% and 2.5%. ECB President Christine Lagarde acknowledged this uncertainty, stating, "If you were to ask me today, 'Where is it?', the honest answer is, 'I don't know.'"
