MNI BRIEF:ECB June Cut 'May Be Appropriate', Not July-Schnabel

Although not pushing back on the likelihood of a June rate cut, ECB executive Board member Isabel Schnabel tells Japan's Nikkei that the prospects of a back-to-back cut in July "does not seem warranted" on current data.

Schnabel says she still sees inflation risks atilted to the upside and that a "front-loading of the easing process would come with a risk of easing prematurely". (see MNI SOURCES: Fed, Geopolitics, Feed ECB Caution Over Cuts)

Further progress in inflation and "especially domestic inflation, which is proving stickier", is needed to foster confidence that inflation is going to sustainably return to the 2% target in 2025 at the latest, she said. The Governing Council should give itself "sufficient time" after the summer "to see what is happening".