It will mark the official end to the record fast-hiking cycle that begun after the Covid-19 pandemic as inflation soared higher.
But investors' attention looks like it has already moved on to what will happen after this June cut by the Frankfurt institution.
But investors' attention looks like it has already moved on to what will happen after this June cut by the Frankfurt institution. "Even with the upside surprise on May HICP , the ECB can argue a cut is consistent with its reaction function. The question is, what comes after June?"came in slightly higher than expected with headline inflation at 2.6% and the print for core at 2.9%. On top of that, negotiated wage growth — a figure closely watched by the ECB — did reaccelerate in the first quarter to 4.7% after hitting 4.5% in in the fourth quarter of 2023."For example.
"We see that some elements of inflation are proving persistent — especially domestic inflation, and services in particular," European Central Bank board member Isabel Schnabel said in an interview with the German public broadcaster ARD on May 16."I would caution against moving too quickly because there is a risk of cutting interest rates too fast. And we should definitively avoid that," she said.
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