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ECB cuts rates again with more to come, even if Lagarde won’t commit
No, nothing to see here. At least no growth panic. Rates were cut again because the ECB thought it could do so, not because it necessarily had to. This somehow is the main message the European Central Bank tried to convey at today’s meeting in Ljubljana. The decision to cut rates by 25bp only five weeks after the last cut and with only very few pieces of economic data since then suggests that the ECB must have become much more concerned about the eurozone’s growth outlook and the risk of inflation undershooting the target. That said, ECB president Christine Lagarde tried to play down growth concerns and rather ... (full story)