MNI BRIEF: June ECB Cut "Fait Accompli" If No Surprise-Guindos

Assuming no major surprises in coming weeks, an ECB rate cut in June is a “fait accompli”, Vice President Luis de Guindos told Le Monde in an interview published Tuesday.

Asked how quickly further rate cuts could follow, de Guindos said it depended on data, the geopolitical situation and the impact on energy costs, adding policymakers will also need to wage and productivity developments. "And we will need to take into account what’s happening in the US, where inflation is higher". (see MNI SOURCES: ECB Wary Of Any "Significant Divergence" With Fed)

"The level of uncertainty makes it very difficult to say. I already mentioned June. As for what happens afterwards, I’m inclined to be very cautious.," he said. (see MNI SOURCES: ECB Still Divided Over Guidance As It Nears Cuts)