SPEU - Lagarde Opens The Door Slightly To June Rate Cuts
2024-03-07 12:10:00 ET
Summary
- ECB President Christine Lagarde slightly opened the door to rate cuts at the June meeting.
- However, with inflation gradually coming down but not undershooting the target and growth returning to potential later this year, the central bank's macro outlook doesn't offer a lot of room for a longer series of rate cuts.
- As much as the central bank hastily and sharply hiked rates on the way up, we think it will be cautious and gradual on the way back down.
Today, we saw no policy action and all focus on communication from the European Central Bank. This had already been the focus of today's meeting for a while. The just-published policy announcement shows that now is not the time for rate cuts and that - at least in its official communication - the ECB is resisting the temptation to send any new signals regarding upcoming rate reductions....
Lagarde Opens The Door Slightly To June Rate Cuts