- Interest rates are doing what they are supposed to do, which is bring inflation down
- Once we see inflation converging to 2% target, then monetary policy might start to ease
- But it’s still too early for that to happen now
- The ECB remains data dependent
- Recent data have been favourable but not enough to change policy
- It is too early to talk about rate cuts
- Full interview
This continues the pushback since last week, with the ECB continuing to argue that they aren’t looking at rate cuts just yet. But once again, the market has its own thinking with the first rate cut priced in for April next year with odds of a move in March at ~51% currently.
This article was written by Justin Low at www.forexlive.com. Source