Lagarde Says It’s Likely ECB Will Cut Rates in Summer
The European Central Bank is likely to cut interest rates in the summer, according to President Christine Lagarde.
The European Central Bank is likely to cut interest rates in the summer, according to President Christine Lagarde. Interviewed at Bloomberg House in Davos by Francine Lacqua, she was asked if there could be majority support for such a move, given that several policymakers have signaled that timing.
Just a day before the start of the so-called quiet period that precedes ECB monetary-policy meetings, the president is joining many of her colleagues in seeking to damp expectations of imminent loosening, while acknowledging that officials are on a path to ultimately lower borrowing costs.
The ECB is still concerned about upside risks to wages and Governing Council members, most notably Chief Economist Philip Lane, have signaled they should wait until they have the data for the first quarter of this year before starting to loosen policy. This points to June as the most likely date for the first rate cut.
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