- Data-dependent approach has been an appropriate one so far
- Forward guidance is still not a good policy solution given high uncertainty
- Baseline scenario is that we are gradually approaching 2% inflation target
- This means we can start to cut rates
- But process needs to be gradual and we should not rush it
This continues the chorus of commentary from the ECB since last week, reaffirming that June will be the first move.
This article was written by Justin Low at www.forexlive.com.
