Familiar View From Simkus

Comments from ECB’s Simkus currently circulating. They are in generally line with his previous stance, suggesting that the March meeting is “premature” re: implementing a rate cut, although he notes that related discussions can get underway then.

• He once again flagged June as the most likely start for the cutting cycle, while noting that cuts aren’t needed at every meeting after the easing cycle begins.
• Simkus previously told us (MNI) that the ECB could cut rates in April or June, but uncertainty is too great for clear forward guidance and more confirmation is needed of a sustainable decline in inflation before deciding on the timing and the pace of subsequent easing,