MNI BRIEF: Chances Of ECB Cut Before Summer Break Rising-Nagel

The probability the European Central Bank cuts interest rates before the summer break “is increasing”, with the June meeting having a higher probability than April’s, Bundesbank Governor Joachim Nagel told an MNI Webcast event on Friday.

However, he added that he sees no “kind of automatism” or clear sequence once the ECB start cutting rates and that it will continue with its data-dependent approach. The easing cycle should run at a smooth rhythm during this year and 2025.

“We should be cautious”, he said, noting that volatile energy prices and wages could provide surprises. (See MNI SOURCES: ECB Cut Expectations Range From 50-100BP In 2024)