The ECB has become “the central bank to be followed,” one central bank governor said.
CNBC spoke to 12 members of the European Central Bank's Governing Council, which votes on interest rate moves, in New York this week.A sculpture of the Euro currency stands in the city centre of Frankfurt am Main, western Germany, on January 25, 2024.
"We just need to build a bit more confidence in this disinflationary process, but if it moves according to our expectations, if we don't have a major shock in development, we are heading towards a moment where we have to moderate the restrictive monetary policy," Lagarde told CNBC's Sara Eisen.
"We have seen what's happened in the Middle East ... we may have a different oil price, and this of course may require us to rethink our strategy," he said.For Centeno, a more dovish member, it is "about time to change this monetary policy cycle" given the recent slowdown in inflation. "I think we've now over the last few weeks seen enough data to say that we've reached the top of the ladder, and at our last meeting, from my perspective, we've got greater confidence that we can start to reduce the tightening in our monetary policy stance," Makhlouf said."We would really need bad news for not cutting in June," Wunsch told CNBC, referring to two surprisingly negative inflation prints or oil prices spiking.
"Everything is pointing towards... declining inflation all over, including wages, food, energy and so on," he said.
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