Lagarde Says ECB Can’t Commit to Cuts After Likely June Move

-- The European Central Bank can’t commit to further reductions in borrowing costs after a likely first move in June, according to President Christine Lagarde.US Weighs Sanctioning Huawei’s Secretive Chinese Chip Network

With the timing of the first reduction increasingly clear, the debate is shifting to how quickly the ECB will unwind its historic campaign of rate hikes and where borrowing costs will ultimately end up. “We will be calibrating for a long time to come the balance between the level of restrictiveness we need and the rate of progress we see in underlying inflation and wages,” Chief Economist Philip Lane told the same event Wednesday in Frankfurt.“The good news is that inflation is now in the process of coming down,” he told LM FM radio.

“If these data reveal a sufficient degree of alignment between the path of underlying inflation and our projections, and assuming transmission remains strong, we will be able to move into the dialing back phase of our policy cycle and make policy less restrictive,” she said.

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