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ECB Watch: Towards a summer cut
The ECB expectedly left rates unchanged and confirmed that the December baseline still largely holds. That said, the statement dropped the earlier reference to domestic price pressures being elevated, likely in a nod to the clear falls seen in core inflation lately, though Lagarde later played down changes of individual words in the statement. In the Q&A, Lagarde confirmed that the consensus in the Governing Council was that it remained premature to discuss rate cuts, but reminded that the ECB remained in a data-dependent mode, which means that the ECB’s views evolve with incoming data. On a question on the ... (full story)