- I’m still cautious, following all data available.
- I’m worried about investment in the Euro Area.
- Strong Euro will bring more investors to Europe.
- Euro strength reflection of global developments.
- I’m in no rush to lower interest rates.
- A weak Q2 could raise the risk of too low inflation.
- The risk of inflation undershoot is greater than overshoot.
Centeno is a dove and he’s been focusing on slower growth for quite some time. He’s in no rush to lower rates but he still sounds like someone who would vote for a rate cut easily. As a reminder, the ECB is on pause at least until September as the central bank gather more information throughout the summer.
This article was written by Giuseppe Dellamotta at www.forexlive.com.