ECB Member: High Inflation is Over and Rate Cuts Are Coming
“An ECB member confirms that the period of high inflation has ended, pointing to expectations of interest rate cuts to support the economy and stabilize European markets.”
“As global markets adapt to rapid economic shifts, the European Central Bank emphasizes the importance of cautious monetary policies to address current challenges.”
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Europe
Madis Müller, a member of the European Central Bank (ECB) and Governor of the Bank of Estonia, stated that temporary fluctuations in inflation levels are natural and unavoidable. He emphasized a unanimous agreement among the ECB Governing Council members regarding future monetary policies. Müller clarified that the era of high inflation is over, and the ECB’s primary goal is to achieve an inflation rate close to 2%.
Müller also highlighted expectations for further interest rate cuts of up to 100 basis points to support economic activity and enhance financial stability in European markets. However, he acknowledged that prices remain relatively high compared to current economic conditions, posing economic challenges that require careful handling.
On a global scale, Müller noted that it is too early to evaluate the potential impacts of former U.S. President Donald Trump’s policies on the European economy, given the rapidly evolving global economic landscape that imposes additional challenges on markets.
Apple
Apple Temporarily Stops Selling iPhones in the EU and Switzerland
Media reports revealed that U.S. tech giant Apple will suspend the sale of three of its iPhones in the European Union and Switzerland for 14 days to comply with EU regulations set to take effect by the end of this year.
According to Forbes, the affected models are the iPhone 14,
iPhone 14 Plus, and the third-generation iPhone SE, which feature the Lightning port used for charging and syncing Apple devices.
This halt aligns with an EU directive issued in 2022 mandating all phones and certain electronic devices sold
within the EU to use USB-C ports to reduce electronic waste.
Although Apple initially opposed this directive, it has gradually adapted.
In 2023, the company introduced the iPhone 15 with a USB-C port and transitioned its iPad lineup to the same standard.
In addition to the EU, Switzerland will also halt sales of the affected phones.
Despite not being an EU member, Switzerland follows similar regulations in many of its laws.
France
Annual Inflation in France Accelerates to 1.7% in November
France’s National Institute of Statistics and Economic Studies announced on Friday that consumer prices increased by 1.7% year-on-year in November, aligning with the preliminary reading published earlier.
This marks a slight acceleration in inflation compared to October’s rate of 1.6%.
This rate matches the forecasts of economists surveyed by Reuters,
who predicted that the harmonized inflation rate for comparison with EU countries would reach 1.7% in November.
The institute noted that seasonal declines in air transportation prices contributed to a decrease in service costs,
which impacted the monthly inflation rate. The rate fell by 0.1% in November, following a 0.3% increase in October.
ECB Member: High Inflation is Over and Rate Cuts Are Coming