Rates, EU stock markets see cuts in June

They go up quotationi of a rate cut by the ECB in June. The confirmation comes from the words of Joachim Nagel, president of the Deutsche Bundesbank, who however remains on the path of caution with i data on inflation which obviously remain under the microscope.

“Probability is getting higher”

“Talking about the meeting of June, I think the likelihood of seeing a rate cut, but they are still there some warnings”, said Nagel, underlining however that “core inflation is still high, services inflation is high. For the June meeting we will have our projections, so we will have our new forecasts and if there is confirmation that inflation is indeed coming down and we will reach our target in 2025, as I said, the probability is growing taller.”

The prospects of an interest rate cut in June by the European Central Bank presuppose that there are no further setbacks in the geopolitical situation that would influence energy prices and therefore inflation,” he said a few hours earlier also the ECB advisor Olli Rehn.

Short-term rate cut, barring unforeseen events

Signals moreover, they are already in this direction arrived. “The date for a first is starting to be more clearly visible rate cut” and “the arguments in favor of a cut are getting stronger”: we read in one of the passages of the minutes of the ECB Governing Council of 6-7 March, which however adds that on that date the governors had “consensus on the fact that it would be premature to discuss a rate cut on this occasion.” “Patience and caution are still necessary” regarding the decline in inflation.

ECB gets ahead of Fed

Confirmed by the recent statements ofto Lagarde. “We are observing a disinflationary process. If it moves in line with our expectations we are moving towards a time when we can moderate monetary policy provided that nLet there be no more shocks“. The president of the ECB said this, responding to those who asked her about a possible rate cut in June. However, Lagarde did not want to comment on the hypothesis of further rate cuts in 2024. “We are tied to the data and there is enormous uncertainty due to the geopolitical developments”, he precised.

Statements, those of Lagarde, which pushed the prices upwards European stock exchanges who at this point “see” a cut in June, with the ECB ready to get ahead of the curve Fed.