ECB’s Centeno says should start interest rate cuts sooner rather than later

  • Inflation is decreasing in a sustained manner
  • Almost all factors that drove prices up have dissipated
  • Should start cutting rates sooner rather than later, but avoid abrupt moves
  • No need to wait for wages data in May to make rate decisions
  • There are no visible second-round effects of wage hikes

This will just serve to feed market hopes of a rate cut in April, which is ~98% priced in currently. The euro is struggling a little on the session, with EUR/CHF in particular down 0.4% to a two-week low of 0.9325 now.

This article was written by Justin Low at www.forexlive.com. Source