(Reuters) – Eurozone households are likely to reduce their savings and spend more of their disposable income this year, although the shift will still be modest, European Central Bank chief economist Philip Lane said on Wednesday.
Improved real incomes and lower interest rates on bank deposits could encourage households to reduce their extremely high savings rate, but uncertainty, including geopolitics, could still make consumers cautious, Lane said at a Goldman Sachs event in Hong Kong.
“So we think this (high savings rate) will come down, but not massively,” Lane said.
