The European Central Bank (ECB) has cut interest rates by 25 basis points to 3.75%, marking its first rate reduction since 2019. This move, announced on June 6, comes after the rate had been steady at 4% since September 2023. The ECB emphasized that it is not pre-committing to a specific path forward, highlighting a data-driven approach to future decisions. ECB policymakers, including Francois Villeroy, have indicated that there is significant leeway to lower rates further before exiting restrictive territory. The Governing Council made this decision based on updated inflation dynamics. Villeroy also expressed confidence that inflation will return to the 2% target by 2025, despite potential volatility in monthly figures due to base effects on energy prices.
ECB'S VILLEROY: THE 2% GOAL IS IN SIGHT BUT WE AREN'T RELAXING OUR RESOLVE & ARE STILL ACTIVELY FIGHTING INFLATION.
ECB's Lane: We are not pre-committing to a particular rate path https://t.co/fCghOuQSHy
ECB'S LANE: WE ARE NOT PRE-COMMITTING TO A PARTICULAR RATE PATH
#ECB's Villeroy: Significant leeway to lower rates before exiting restrictive policy Key takeaways "We are monitoring actual inflation data, in particular for services, but monthly figures will be volatile due to base effects on energy."
#ECB’s Villeroy: We Have Significant Leeway To Lower Our Rates Before Exiting Restrictive Territory
ECB's Villeroy: We have leeway to lower rates before exiting restrictive stance https://t.co/p7ZPWBbNpy
🔵 ECB TO HIT INFLATION TARGET DESPITE DATA "NOISE" - VILLEROY Full Story → https://t.co/3LdJNbZoLl The European Central Bank will bring inflation back to its 2% target by next year despite expected "noise" in monthly data this year, ECB policymaker Francois Villeroy de… https://t.co/1nA6UI2aaR
ECB'S VILLEROY: THIS NOISE IS NOT VERY MEANINGFUL, AND HENCE WE ARE STILL MORE OUTLOOK DRIVEN AND WILL LOOK MORE CLOSELY AT THE INFLATION FORECASTS.
⚠️ ECB'S VILLEROY: **WE HAVE SIGNIFICANT LEEWAY TO LOWER OUR RATES BEFORE EXITING RESTRICTIVE TERRITORY **WE ARE MONITORING ACTUAL INFLATION DATA, IN PARTICULAR FOR SERVICES, BUT MONTHLY FIGURES WILL BE VOLATILE DUE TO BASE EFFECTS ON ENERGY **THIS “NOISE” IS NOT VERY…
ECB'S VILLEROY: WE ARE MONITORING ACTUAL INFLATION DATA, IN PARTICULAR FOR SERVICES, BUT MONTHLY FIGURES WILL BE VOLATILE DUE TO BASE EFFECTS ON ENERGY.
ECB'S VILLEROY: WE REMAIN CONFIDENT THAT BARRING AN EXTERNAL SHOCK, WE WILL BRING INFLATION TO 2% TARGET BY NEXT YEAR, WE WILL REACH IT WITH A SOFT RATHER THAN HARD LANDING
ECB’s Villeroy: We Have Significant Leeway To Lower Our Rates Before Exiting Restrictive Territory
ECB'S VILLEROY: WE HAVE SIGNIFICANT LEEWAY TO LOWER OUR RATES BEFORE EXITING RESTRICTIVE TERRITORY.
ECB'S VILLEROY: WE HAVE SIGNIFICANT LEEWAY TO LOWER OUR RATES BEFORE EXITING RESTRICTIVE TERRITORY
ECB'S VILLEROY: ECB RATE CUT MARKS A DECISIVE ORIENTATION.
Market Update: Central Banks Are Starting To Cut Interest Rates the cliff-notes: • The ECB cut its policy interest rate by 25 basis points, citing inflation dynamics and policy strength. • This follows the Bank of Canada's 25-bps cut, marking a shift from tight to loose… https://t.co/tLAELL2qEi
#European Central Bank Cuts Rates by 0.25%, Confirms Data Driven Approach for Upcoming Path #ECB https://t.co/YWQdvrXU02
📽️ WATCH - TRADERS QUESTION CASE FOR RAPID ECB RATE CUTS The European Central Bank went ahead with its first interest rate cut since 2019 on Thursday (June 6), citing progress in tackling inflation while acknowledging the fight was far from over. https://t.co/PvIEbr64dj
ECB's Villeroy: We will move at appropriate pace on rate cuts https://t.co/UxQ5T2X07d
ECB'S VILLEROY: BARRING SHOCK, INFLATION IS TO RETURN TO 2% IN 2025.
ICYMI - the ECB cut rates by 25bp and leaves the future path unclear https://t.co/lHYtboMbbQ
🚨 European Central Bank Cuts Interest Rates for the First Time in Half Decade The ECB announced, “The Governing Council today decided to lower the three key ECB interest rates by 25 basis points.” It made that decision for the first time in five years based “on an updated… https://t.co/oHlowN1PcD
The ECB rate cut is
The European Central Bank cut interest rates to 3.75% for the first time since 2019, reports @CNBC. The interest rate had been steady at 4% since September 2023. Markets have only fully priced one further reduction this year, but economists polled by Reuters last week forecast… https://t.co/Xyj9JfPDSp
On the ECB rate cut https://t.co/2ZuBZDKr4l
The ECB cut rates but said it wasn’t “pre-committing” to a particular path forward https://t.co/H7MI38uEEO