Loan Digest

ECB Meeting: Investors Await Confirmation of June Rate Cut

  • 📰 IrishTimesBiz
  • ⏱ Reading Time:
  • 22 sec. here
  • 8 min. at publisher
  • 📊 Quality Score:
  • News: 33%
  • Publisher: 77%

Finance News

ECB,Interest Rates,Rate Cut

The European Central Bank (ECB) is not expected to lower interest rates at its meeting on Thursday but investors will be looking for confirmation that a June rate cut is on the cards. The potential fly in the ointment is wage growth which is pushing inflation in the services sector, now seen as the stickiest part of the equation.

Markets expect Frankfurt to implement a sequence of rate cuts in the second half of 2024 but wage growth remains the chief worryPresident of the European Central Bank Christine Lagarde addresses a press conference following the meeting of the governing council of the ECB in Frankfurt last month.

ECB policymakers have repeatedly highlighted first-quarter wage data, due out in late May, as a key reference point that will inform June’s rate decision. If she admits that rate-cutting discussions are under way in response to further signs of disinflation, this will be interpreted as laying the groundwork for a rate cut at its next meeting in June, according to Matthew Ryan of financial services firm Ebury.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in LOANS

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

ECB ready in June to discuss rate cuts, de Guindos saysThe European Central Bank will be in position to discuss an interest rate cut in June, Vice President Luis de Guindos said today, joining a long list of policymakers putting the June 6 meeting on the table for a potential start of policy easing.
Source: RTEbusiness - 🏆 16. / 61 Read more »

Gabriel Makhlouf hints at ECB interest rate cut in JuneThe Central Bank governor signalled a cautious outlook ahead for cutting interest rates
Source: businessposthq - 🏆 8. / 71 Read more »

ECB should be able to make June interest rate decisionCentral Bank governor Gabriel Makhlouf said the history of monetary policy shows rushed decisions are often wrong
Source: IrishTimesBiz - 🏆 6. / 77 Read more »

ECB's Holzmann says warming to June rate cutThe European Central Bank could start cutting interest rates in June as inflation may fall quicker than expected but should not get too far ahead of its US counterpart, as that diminishes the potency of easing, Austrian policymaker Robert Holzmann said.
Source: RTEbusiness - 🏆 16. / 61 Read more »

The Irish Times view on the ECB meeting: time to prepare to cut interest ratesInflation is falling fast and growth in the big euro zone economies is slow, meaning pressure will grow for lower borrowing costs
Source: IrishTimes - 🏆 3. / 98 Read more »