ECB’s Lane: Interest rate cuts are not a near-term topic

  • December inflation number broadly confirmed assessment from December meetings
  • Once we are firmly on our way to 2%, then rate cut topic will come to the forefront
  • Interest rate cuts are not a near-term topic

The question for all central banks are is: How much progress do they need to see to feel comfortable that they’re on track for 2-3% inflation?

When he says they’re not talking about it near-term; that’s true but it’s something that can change with a single comment. The market is pricing in a 70% chance of a March cut.

This article was written by Adam Button at www.forexlive.com. Source