Previous Trading Days Events 07.08.2024

The European Central Bank ECB kept borrowing costs at record highs with the decision to hold all three key rates steady, saying it had made good progress in bringing down inflation and that cuts could take place this year.

New forecasts are pointing to lower inflation and growth. ECB policymakers are preparing for a first cut in interest rates, probably in June, provided incoming data, especially on wages, confirms the trend.

We did not discuss cuts for this meeting, but we are just beginning to discuss the dialling back of our restrictive stance, ECB President Christine Lagarde told a press conference.

Lagarde hinted strongly that was more likely to happen at the ECBs June 6 meeting, as wage data for the first quarter will then have been published.

We will know a little more in April, but we will know a lot more in June, Lagarde said.

She noted that inflation, including nearly all underlying measures, has been falling towards the ECBs 2 target and is now expected to come in lower over the next two years.

Inflation has been declining for nearly 18 months, to 2.6 in February.

We also look very carefully at data concerning underlying inflation and here we are seeing a decline across the board except domestic inflation, Lagarde said.

Source httpswww.reuters.comworldeuropeecbholdratestakebabystepstowardsfirstcut20240306

Were waiting to become more confident that inflation is moving sustainably at 2, Powell said…