ECB’s Lane: Incoming data on wages and profits have been in line with expectations

  • Negotiated wage growth will remain high and volatile over the remainder of the year
  • A gradual approach to dialing back restrictiveness will be appropriate if the incoming data are in line with the baseline projection
  • We should retain optionality about the speed of adjustment

Lane is putting 50 bps on the table here but it will take a (futher) deterioration in data.

This article was written by Adam Button at www.forexlive.com. Source