The ECB is expected to cut interest rates by 25 basis points on Thursday, the first time interest rates will have been cut in the currency bloc since 2019.
There is currently a 99% probability of a cut priced into the Eurozone swaps market. When a rate cut is so anticipated, the focus shifts to what comes next. Shifts in ECB expectations As we lead up to this meeting, there has been a recalibration of rate cut expectations for the ECB . There is only a 12% chance of a back-to-back cut in July, and the probability of rate cuts in September and December have been scaled back in recent days.
Lagarde tries to find a path that pleases all of the ECB A number of ECB members have voiced concern about inflation pressures and the risk of cutting rates too far when inflation pressures remain, for example the heads of the German and the Austrian central banks. However, there is some pressure to cut rates at a faster clip. The Bank of Italy governor said on Tuesday that prompt, gradual cuts could avoid ‘tardy, hasty ones later’.
Macroeconomics Intermarket Eurozone EURUSD
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Strong to severe storms possible Thursday and Thursday nightMontgomery, Alabama
Read more »
ECB is likely to jump ahead of the Fed by cutting rates on June 6The European Central Bank on Thursday is likely to lower interest rates, while the Federal Reserve remains on hold with plans to trim U.S borrowing costs.
Read more »
– ECB Set to Cut Rates Next Week Despite Rising German InflationGerman inflation grew on an annualised basis, data released today showed, but the market still believes that the ECB will start cutting interest rates next week
Read more »
ECB will cut rates in June and probably the BoE, tooInitial jobless claims rose 22,000 to 231,000 in the latest week, more than 215,000 forecast.
Read more »
EUR/USD drops from 1.0800 as ECB looks set to lower rates three times this yearEUR/USD is slightly down by 0.10% at 1.0760 in Tuesday’s European session.
Read more »
First Alert: Heat cranks up, storms return Thursday nightFirst Alert: Heat builds today and tomorrow, storms return Thursday into Thursday night
Read more »