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MNI BRIEF: "Premature" To Discuss Rate Cuts - ECB Lagarde

(MNI) LONDON
(MNI) London

Lagarde pushes back on early rate cuts, but stands by comments that consensus on GC sees cuts likely by summer.

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There was consensus on the European Central Bank's Governing Council that it was too early to discuss rate cuts at the January meeting, President Christine Lagarde said on Thursday.

She added that consensus around the table was also for the Governing Council to remain data dependent and not follow the calendar. As expected, the ECB kept rates on hold, offering no signal of when it could shift to an easing mode. However, Lagarde said she stood by her recent comments that there appeared to be a solid consensus of policymakers who now thought a cut in rates by the summer was likely. (See MNI SOURCES: "Biggest Minority" Favours ECB June Cut)

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There was consensus on the European Central Bank's Governing Council that it was too early to discuss rate cuts at the January meeting, President Christine Lagarde said on Thursday.

She added that consensus around the table was also for the Governing Council to remain data dependent and not follow the calendar. As expected, the ECB kept rates on hold, offering no signal of when it could shift to an easing mode. However, Lagarde said she stood by her recent comments that there appeared to be a solid consensus of policymakers who now thought a cut in rates by the summer was likely. (See MNI SOURCES: "Biggest Minority" Favours ECB June Cut)