ECB Pres. Lagarde in a newspaper interview says:
- Rates may not necessarily be on a linear declining path, there might be periods when we hold
- Possible ECB will hold rates for longer than a single meeting.
- Keen to see evolution of labor costs, corporate profits.
- Time dependent guidance on rates not helpful.
The ECB cut rates by 25 basis points but it was considered a hawkish cut as some members felt that the ECB pre-committed, forcing their hand. As a result the expectations for July cut our pretty much off the table.
This article was written by Greg Michalowski at www.forexlive.com.
