(Reuters) – Euro zone households are more likely to cut back their financial savings this 12 months and devour extra of their disposable revenue, although this shift continues to be more likely to be modest, European Central Financial institution chief economist Philip Lane stated on Wednesday.
Improved actual incomes and decrease financial institution deposit charges might immediate households to cut back their exceptionally excessive saving charge however uncertainty, together with about geopolitics, might nonetheless hold customers cautious, Lane informed a Goldman Sachs occasion in Hong Kong.
“So, we do assume this (excessive financial savings charge) goes to come back down, however not massively,” Lane stated.