June 06, 2024 12:25 GMT
Rate decision as expected; no reference to insurance cut / removal of insurance hike
ECB
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- So rate decision as expected.
- Guidance references "data-dependency" going forward and saying it is not pre-committing.
- No reference in the statement to this being an insurance cut or removal of an insurance hike - which would have been much more hawkish - just a reference that rates being restrictive has helped inflation come down and that rates remain restrictive.
- The initial market reaction has not thus far been huge and seems to be due to the fact the ECB hasn't pre-committed to the start of a series of cuts while inflation forecasts are both higher than previous and higher than expected.
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