The ECB Vice President Luis de Gwendos's remarks this morning were as follows: -
- Interest rates do what they're supposed to do, which is cut inflation
- Once we see inflation nearing the 2% target, monetary policy may start to ease
- But it's too early for it to happen now
- The ECB still relies on data
- Recent data is favorable but not enough to change policy
- It's too early to talk about rate cuts and that decline has been going on since last week, with the ECB continuing to say it's not looking at rate cuts yet.
But the market has its thinking as the market price to be the first rate cut in April next year with the odds of moving in March currently at 51%.
