He says that inflation trend in the euro area is consistent with further gradual ECB rate cuts. Adding that with the projections now assuming two more rate cuts by year-end, there is “no reason now not to follow through” on that.
I would take that as meaning two rate cuts at the minimum. Currently, markets are pricing in ~64 bps by year-end with a September rate cut locked in already.
This article was written by Justin Low at www.forexlive.com.
