- Rate cuts must wait for more tariff certainty.
- There was a broad consensus around lowering rates, but some disagreement at the margins.
- It wasn’t clear yet to what extent tariff countermeasures were being taken.
- There may be further cuts this year, but the number is still outstanding
- Says that while various scenarios remained possible with regard to prices and movement of rates, for the time being direction was a downward
ECB’s Holzmann maintains a dovish policy bias but with caution. While there is broad consensus toward rate cuts and the overall direction is downward, he emphasizes the need for more clarity on tariffs before acting. Further cuts are possible this year, but uncertainties around countermeasures and marginal disagreements within the ECB suggest a measured, data-dependent approach.
This article was written by Greg Michalowski at www.forexlive.com.