Euro Zone inflation fell far more than

expected in November Consumer Price

growth in the 201 Nations sharing the

euro currency dropped to 2.4% this month

it was down from 2.9% in October and

Below expectations of

2.7% this rapid inflation slowdown puts

the European Central Bank in

disagreement with

investors it appears both see a greatly

different way ahead for Consumer prices

and ECB interest rates the ECB argues

underlying Dynamics are more stubborn

than they appear it also believes

inflation will come back above 3% next

year and finally hit its Target of 2% in

2 years that requires the bank to hold

its deposit rate at a record 4% high for

an extended period but investors have

increasingly ignored ECB president

Christine lag guard's guidance for

steady rates for several quarters

Traders on thir Thursday bet that the

first interest rate Cuts will come by

April a key reason for the difference is

that the ecb's own projections have a

poor trap record it's been forced

several times in recent years to abandon

its own guidance after first pushing

back on Market
expectations economists say growth is

weaker than the ECB expected and argue

the labor market is softening and credit

demand has fallen away which points

towards disinflation

but some economists argue modeling

current inflation is difficult because

corporate profits are the main driver

not wages as in normal examples of Rapid

inflation separate figures on Thursday

show German unemployment Rose in

November and the French economy was

shown to have contracted in the third

quarter that has raised investor bets

that the ECB will cut interest rates

early next

year