ECB’s Villeroy: There is a risk of undershooting 2% target, especially if growth weak

  • Inflation could be at target in early 2025
  • The ECB is not behind the curve but risk of cutting rates too late is bigger than cutting too early
  • No reason for rates to stay restrictive in 2025

Lagarde was a bit more dovish today and these comments are as well. I don’t think that puts 50 bps on the table yet but the Dec 12 meeting is a ways away.

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