Markets are virtually fully pricing in an ECB rate cut next week (23bp), but our economics team discusses here how the decision may well be much closer than the rates market suggests, ING’s FX analyst Francesco Pesole.
Markets are virtually fully pricing in an ECB rate cut next week , but our economics team discusses here how the decision may well be much closer than the rates market suggests, ING’s FX analyst Francesco Pesole.
Incidentally, single-country data keeps pointing to sticky services inflation, and the recent oil price rise means a potential revision higher in the inflation forecasts at the next round of staff projections.” “Markets are hardly ignorant of these factors, but are equally hanging on to dovish comments by ECB members like Villeroy and probably also the view that they can push the ECB into a cut by pricing it in fully on meeting’s day.
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