ECB’s Lagarde: We will continue to follow a data-dependent approach

  • Incoming data continues to signal subdued activity in the near-term
  • But information was broadly in line with December assessment
  • Current disinflation process expected to continue
  • But we need to be confident that it will lead us to sustainably hit 2% inflation target
  • ECB’s forward-looking wage tracker continues to signal strong wage pressures

Her remarks aren’t anything new and follows the ongoing narrative. She’s still alluding to wages data as being a key consideration, which keeps the door open to cut rates in June or July. In any case, it is still a he says, she says situation with markets and the ECB. The odds of an April rate cut are still ~61% priced in currently.

This article was written by Justin Low at Source