ECB Pricing Unfazed By Lagarde/Schnabel Comments

Nothing in the way of substantive, market-moving comments from ECB President Lagarde and Executive Board member Schnabel:

• Lagarde points to further progress on inflation, a resilient labour market, still-strong domestic price pressures and determination to return inflation to target in a timely manner. Lagarde went on to reiterate the Bank’s policy stance, alongside pointing to a need for tighter fiscal policy and the Bank’s aim to finish its framework review by Spring ’24.
• Schnabel pointed to a clear moderation in Eurozone economic activity, while noting that shrinking money supply doesn’t signal a deep recession, while warning that there isn’t an all-clear re: the inflation situation.
• Little movement in ECB-dated OIS vs. levels flagged earlier, with 2bp of tightening showing for October, terminal policy rate pricing 5-6bp above prevailing levels (come December), before a little over 40bp of cuts is seen through September.