ECB meeting - Nearly time to cut The Eurozone economy has gone through a rough patch over the last year.
Central bank decisions in Eurozone, Canada, and New Zealand. Highlight will be the ECB - likely to signal a rate cut in June. In US, the dollar will be driven by inflation stats and Fed minutes. Growth has been almost stagnant, held back by Germany, which fell into contraction as a slowdown in global trade suppressed demand for exports and crippled the nation’s manufacturing sector. On the bright side, the economic stagnation has helped dampen inflationary pressures. Inflation fell to 2.
This would translate into a mixed report for the Fed. A decline in the core rate would suggest the broader trend of disinflation continues, even if rising energy prices are keeping headline inflation elevated. Meanwhile, the minutes will cover the March meeting, where FOMC officials upgraded their growth and inflation forecasts but still projected three rate cuts for this year. It will be interesting to see the discussions behind the scenes.
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