SPEU - ECB's Press Conference Signals Its First Cut Will Be Hawkish

2024-04-12 03:37:00 ET

Summary

• The European Central Bank has kept all policy interest rates unchanged. Inflationary pressures have further decreased, enabling the ECB to be very explicit about next steps.
• The ECB’s assessment of the eurozone economy has not changed since the March meeting.
• Even if the policy announcement does not explicitly mention June as the moment for a first rate cut, we think that today’s meeting should mark the final stop before the cut.

By Carsten Brzeski , Global Head of Macro

ECB President Christine Lagarde’s comments at today’s press conference suggest that the timing of the first rate cut is not a done deal yet – and that it’s going to be a hawkish move as concerns about inflation reaccelerating remain ...

For further details see: