European Central Bank’s Centeno signals earlier-than-expected rate cuts

ECB member and Bank of Portugal governor Mario Centeno spoke on Tuesday in an interview with Econostream Media. ICYMI:

Centeno said rate cuts from the European Central Bank could come sooner than the market expects

• should not wait until May to make a decision
• there are no signs of additional pressure on inflation
• rates have peaked
• expects inflation to have fallen to target in Q2
• “The decision to keep nominal rates steady for the moment is appropriate and we will decide when to cut them sooner than we thought until recently,”
• “I can’t say when, but I can … say the most recent developments on inflation and the economy have obviously brought the moment of easing (of monetary policy) closer”

BNP Paribas much the same:

• BNP Paribas AM says the ECB is likely to cut before the Fed – March or April possible

This article was written by Eamonn Sheridan at www.forexlive.com. Source