All Into Account: Cross Asset Strategy: “View on ECB and European duration as macro picture shifts” with Fabio Bassi, Head of International Rates Strategy

Fabio Bassi joins us to discuss ECB outlook and duration views. Idiosyncratic macro dynamic came to the forefront of rates markets this week with a notable outperformance of EUR rates in a bull steepening move, driven by weak Euro area flash PMI for September and selective inflation data in France and Spain. Higher conviction in the broad disinflation process in the Euro area and downside risk on growth triggered a change in our ECB call, now expecting the ECB to deliver back-to-back 25bp cuts starting in October, reaching 2% policy rate in June 2025, Risks are biased for even lower terminal even in absence of a recession.

Speakers:

Thomas Salopek, Head of Cross Asset Strategy
Fabio Bassi, Head of International Rates Strategy

This podcast was recorded on 2 October 2024.

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