Tuesday, 11 June 2024

ECB Pres. Lagarde: Rates not necessarily on a linear declining path

by BD Banks

ECB Pres. Lagarde in a newspaper interview says:

  • Rates may not necessarily be on a linear declining path, there might be periods when we hold
  • Possible ECB will hold rates for longer than a single meeting.
  • Keen to see evolution of labor costs, corporate profits.
  • Time dependent guidance on rates not helpful.

The ECB cut rates by 25 basis points but it was considered a hawkish cut as some members felt that the ECB pre-committed, forcing their hand. As a result the expectations for July cut our pretty much off the table.

This article was written by Greg Michalowski at www.forexlive.com.