Euro Zone Households’ Savings Outlook

(Reuters) – Euro zone households are likely to reduce their savings this year and consume more of their disposable income, although the shift is expected to be modest, according to European Central Bank chief economist Philip Lane.

Improved real incomes and lower bank deposit rates could encourage households to decrease their exceptionally high saving rate. However, uncertainties, including geopolitical issues, may keep consumers cautious, Lane mentioned during a Goldman Sachs event in Hong Kong.

> “So, we do think this (high savings rate) is going to come down, but not massively,” Lane added.