Deutsche Bank has revised its expectations for the European Central Bank (ECB), now anticipating a rate cut of 75 basis points, down from a previous forecast of 125 basis points, citing potential geopolitical risks. ECB officials, including Rehn and Makhlof, have indicated that a rate cut could be imminent, contingent on inflation approaching 2% and other economic indicators. Holzmann noted that a decision would be made in June, while Centeno highlighted significant progress on inflation, wage growth, and a decoupling of economic conditions between the Eurozone and the US. Cipollone also mentioned signs of economic recovery and potential easing of restrictive measures if economic data through June and July supports such actions. The German central bank chief also noted that a June rate cut looks increasingly likely, but there are still some caveats.
ECB June Rate Cut Looks Increasingly Likely — But There Are ‘Still Some Caveats,’ German Central Bank Chief Says - @CNBC https://t.co/M87VdWr6Nj
ECB June rate cut looks increasingly likely — but there are 'still some caveats,' German central bank chief says https://t.co/yurs1jzOA4
ECB'S CENTENO: AFTER JUNE WE'LL LOOK AT DATA, ESPECIALLY GROWTH AND EMPLOYMENT.
ECB'S CENTENO: THE NUMBER OF CUTS WILL DEPEND ON INCOMING DATA.
ECB'S CIPOLLONE: IF INCOMING DATA IN JUNE AND JULY CONFIRM THAT CONFIDENCE ABOUT THE TARGET IMPROVES, IT WILL BE APPROPRIATE TO REMOVE SOME RESTRICTIVE MEASURES IMPOSED IN 2023.
ECB'S CIPOLLONE: WE ARE SEEING SIGNS OF ECONOMIC RECOVERY IN THE EURO AREA.
ECB'S CENTENO: THERE ARE SIGNS OF DECOUPLING BETWEEN THE EUROZONE AND THE US.
ECB'S CENTENO: DISINFLATION IS STRONG ENOUGH TO COPE WITH SHOCKS.
ECB'S CENTENO: WAGE GROWTH HAS BEEN COMING DOWN SIGNIFICANTLY.
ECB'S CENTENO: THERE IS SIGNIFICANT PROGRESS ON INFLATION.
ECB’s Holzmann: Have To Wait Until June To Decide If To Cut - CNBC - Too Early To Say How Many Times ECB Will Cut In 2024
ECB’S MAKHLOUF: WE ARE PRETTY CLOSE TO A RATE CUT NOW - CNBC
ECB'S REHN: NATURALLY WE MAY TAKE DIFFERENT KINDS OF DECISION IN THE COMING PERIOD.
ECB'S REHN SAYS AT THE MOMENT THERE IS DIVERGENCE BETWEEN THE US AND THE EUROPEAN ECONOMY || SAYS NATURALLY WE MAY TAKE DIFFERENT KINDS OF DECISION IN THE COMING PERIOD
Deutsche Bank $DB expects the ECB to cut 75 bps vs prior expectation of 125 bps. ECB Rehn says a June cut is possible if inflation heads to 2%, but geopolitical risks could prevent this...