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Deeper ECB Cuts Priced On Back Of Initial Lagarde Remarks & U.S. Data

STIR

Initial post-ECB/U.S. data reaction remains dovish when it comes to ECB pricing through ’24. A ~12bp dovish move was seen in ECB Dec ’24 pricing vs. pre-statement levels, with discussions surrounding downside risks to growth, suggestions that wage pressures have started to ease and tweaks to the statement language re: inflation outweighing Lagarde flagging the consensus view being that it was premature to discuss rate cuts at this stage.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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