PIMCO forecast another two European Central Bank rate cuts this year, September & December

PIMCO says the next moves from the ECB will be decided by data flow over the coming months. In brief:

  • we envision the ECB to keep cutting rates at staff projection meetings
  • market pricing seems reasonable and broadly in line with our long-held baseline of three cuts for this year
  • we expect additional cuts in September and December

PIMCO acknowledge that risks are skewed towards fewer cuts, mainly on the back of

  • sticky services inflation,
  • a resilient labour market,
  • loose financial conditions
  • and ECB risk management considerations.

Pacific Investment Management Company (PIMCO) is a US firm that manages circa US$2 trillion in assets

From the weekend, the ECB is cranking up ‘protect the euro’ comments (IMO anyway):

This article was written by Eamonn Sheridan at www.forexlive.com. Source