- While we are heading in the right direction, we must not get ahead of ourselves
- It will take some more time before we have the necessary information
- Wage pressures remain high and we do not yet have sufficient data to confirm they are starting to ease
This just keeps the door open for the ECB to act after getting more adequate wages data in around May. For now, the odds of an April rate cut are at ~62% but I’d wager that as being somewhat 50-50 depending on how the economy develops in the months ahead.
This article was written by Justin Low at www.forexlive.com. Source