June 11, 2024 at 08:51AM
We are monitoring actual inflation data, in particular for services
Monthly figures will be volatile due to base effects on energy
This “noise” is not very meaningful
We are still more outlook driven
Remains confident that inflation will be back to 2% target next year
Will reach inflation target along with a soft landing
The point they are trying to make is that even by cutting rates, it doesn’t mean that they are taking the wrong step in the battle against inflation. Central bankers are just like politicians these days. The first rule of the job is to cover your ass. Pfft.
This article was written by Justin Low at www.forexlive.com.
ECB’s Villeroy: We have leeway to lower rates before exiting restrictive stance