Speaking today, European Central Bank member Nagel said:-
-It is too early to talk about interest rate cuts, since inflation is still very high.
- The markets are sometimes overly optimistic.
- We rely on data.
- Perhaps it is possible to wait until the summer holidays before thinking about lowering interest rates.
It is worth noting that Nagel is considered a hawk of the ECB, so this should be taken into account when interpreting his comments.
On the other hand, ECB member Robert Holzman says that interest rate cuts should not be counted on at all this year He said that the expectations of an interest rate cut are optimistic, and geopolitical developments also pose a risk to price expectations He also said that he does not expect a real recession in the eurozone
They are really trying to pull back from the pricing of the markets right now, as policymakers are looking for a much further timetable on interest rate cuts or so they are trying.
