ECB President Christine Lagarde told Bloomberg news agency at the World Economic Forum in Davos that the central bank could soon make its first interest rate cut. At the same time, however, the Frenchwoman toned down expectations a bit and underlined the cyclical nature of monetary policy. You also highlighted some uncertainties and some leading indicators that have not yet reached the desired level.
Lagarde’s comments follow a number of ECB monetary policymakers advocating interest rate cuts in recent days. At the same time, however, they went against the high expectations of market participants. A few days ago, up to six interest rate cuts for a total of around 1.5 percentage points were expected this year. After comments from Lagarde and her colleagues, expectations have decreased slightly lately.
2024-01-17 18:09:41
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