Caution evident from the Fed’s minutes against cutting rates too quickly has supported the narrative of ‘higher for longer’.
Germany’s energy-intensive industries, low investment, ageing population and weak growth, rather than high government debt, represent challenges to its AAA credit rating – hence the need to reform the debt brake.
The March rate-cut bet is slipping away in Europe as well as the U.S. A day after Federal Reserve Chair Jerome Powell indicated the U.S. central bank probably won't [cut rates in March](https://www.wsj.com/economy/central-banking/fed-leaves-rates-steady-and-opens-door-wider-to-cuts-d10a107d), a higher-than-expected inflation reading in the eurozone suggests it isn't likely there, either. + Core inflation, which excludes volatile categories like food and energy, also declined, but slower than expected. After the data, U.K. consultancy Pantheon Macroeconomics abandoned its call that the European Central Bank would cut rates in March.