Experts warn that while hawkish statements from some ECB advisers leave open the possibility of going ahead with a rate cut in April, they acknowledge this is an “increasingly unlikely” scenario.
The Governing Council of the European Central Bank (ECB) will keep This Thursday stablefor the third consecutive meeting and after ten previous increases, interest rates in the eurozonewhile Christine Lagarde, president of the entity, will aim to temper expectations about the onset of the crisis during the press conference after the conclave. interest rate cuts in the eurozone.
The French company already sent a message to investors at the World Economic Forum, held in Davos last week, in which it acknowledged that, in the absence of significant changes in the data, it is likely that the ECB Governing Council will make the necessary consensus will be reached for lower interest rates during the summer.
In this sense, he warned that there is still one level of uncertainty around the situation and some indicators that are not anchored at the level the ECB wants, in addition to the importance of continuing to collect information on wage developments.
Given this scenario, Peter Goves, head of developed markets sovereign debt analysis at MFS Investment Management, considers it likely that the tone of Lagarde’s press conference will continue this Thursday, in line with the idea of “maintaining the interest for as long as necessary to ensure that the inflation consistently achieving the goal.”
In this sense, Ebury analysts warn that while the aggressive statements of some ECB advisors keep the possibility of a rate cut alive in Aprilthey recognize that this is so an “increasingly unlikely” scenario.
Source: EITB
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