European Central Bank Considers Rate Cut in June
FRANKFURT (Reuters) – The European Central Bank’s (ECB) next move is expected to be a rate cut, with June being the more likely month compared to April. Currently, inflation is showing positive signs, but additional data is necessary to analyze the situation accurately. In his recent blog post, Slovak central bank chief Peter Kazimir confidently stated that a rate cut is imminent and emphasized that the exact timing of the decision is of secondary importance when assessing its impact. While June seems more probable, Kazimir urged against hasty conclusions regarding the timing.
Patience and Crucial Data Before Pivotal ECB Decisions
Peter Kazimir, known for his conservative stance, emphasized the need for patience before making pivotal decisions within the 26-person Governing Council. He underscored the significance of incoming inflation figures and the ECB’s March projections in shaping the course of action. Currently, investors anticipate interest rate cuts of up to 140 basis points throughout the year, with a nearly 100% chance of the first cut happening in April. However, Kazimir expressed concerns about the potential risks associated with a premature rate cut, urging careful consideration before taking action.