The macro projections published by the ECB and the appearance of its president Lagarde before the media after the meeting last Thursday confirmed the expectation that the first rate cut could occur in June.
Investors discount that both the Federal Reserve and the ECB will begin the relaxation cycle at the beginning of summer. It should be noted that, during the tension cycle, the FED was more aggressive than the ECB both in time and form, so we will see if at the June meeting of the ECB, which will be held 6 days before that of the FED, President Lagarde begins the descents before her American counterpart.
Peter Kazimir, member of the Slovak Governing Council of the ECB, began the week with statements that supported these expectations, stating that the body should wait until June for the first rate cut. His argument is based on the need to have more conclusive evidence about the inflation outlook, since he believes that the appropriate confidence threshold will not be reached until that month.
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Economic News, European Central Bank, ECB, FED
