- We’re going with not less than two charge cuts this 12 months, barring any dangerous information
- We nonetheless need coverage to stay somewhat restrictive
- Slicing charges once more in July could possibly be interpreted to imply we’re going to reduce at each assembly
- And that might result in repricing which may go too far
- July determination ought to be about managing expectations
- I am very comfy with charge reduce in June
- But when we solely do two or three charge cuts, then shouldn’t talk that at each assembly
- Could be very shocked if ECB does greater than 25 bps charge reduce in June
This text was written by Justin Low at www.forexlive.com.
