BRIEF: EC Approves Italy's 5th NGEU Payment Request For EUR11 billion

MNI BRIEF: ECB's Eye On French Markets, Price Stability Key

MNI BRIEF: Lower Inflation Path Remains Bumpy - Lagarde

MNI BRIEF: 'Noise' Driving Economic Deterioration- Campos Neto

MNI China Daily Summary: Tuesday, July 2

MNI BRIEF: China Aims For AI Standards By 2026

EZ/UK T-Bill Calendar: Greece, EU Auction on Wednesday

EZ/UK Bond Supply Calendar: 2.60% Aug-34 Bund Due Wednesday

Ita-coin Nowcast Negative For Second Month

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Lagarde Talks Down Prospect of Back-to-Back Rate Cuts

ECB
Credit BulletsEM BulletHomepagemarkets-real-timeCreditEmerging Market NewsBulletMarketsFixed Income BulletsForeign Exchange BulletsEuropean Central Bank (ECB) Market News
  • In a joint interview with several European newspapers, ECB's Lagarde states that "we're not declaring victory over inflation yet [...] there might be periods with rates on hold, and rates aren't on a linear declining path".
  • Relatively little here that we didn't get from last week's ECB press conference - the ECB President again stresses that caution is the dominant force at the ECB, and markets shouldn't expect back-to-back policy rate cuts.
  • Forward guidance is a particular part of focus for the interview - wherein she says "forward guidance is not going to help us":
  • "Asked why the ECB’s policy statement last week didn’t refer to reducing the current level of monetary-policy restriction, she responded that “removing the easing bias was dictated by our wanting to be data dependent, with a real understanding of where we are heading and when we will reach 2%.” Given high uncertainty, “forward guidance is not going to help us,” Lagarde said. "
156 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • In a joint interview with several European newspapers, ECB's Lagarde states that "we're not declaring victory over inflation yet [...] there might be periods with rates on hold, and rates aren't on a linear declining path".
  • Relatively little here that we didn't get from last week's ECB press conference - the ECB President again stresses that caution is the dominant force at the ECB, and markets shouldn't expect back-to-back policy rate cuts.
  • Forward guidance is a particular part of focus for the interview - wherein she says "forward guidance is not going to help us":
  • "Asked why the ECB’s policy statement last week didn’t refer to reducing the current level of monetary-policy restriction, she responded that “removing the easing bias was dictated by our wanting to be data dependent, with a real understanding of where we are heading and when we will reach 2%.” Given high uncertainty, “forward guidance is not going to help us,” Lagarde said. "