ECB seen cutting rate to 2.00% – BBH
|The ECB is widely expected to cut the policy rate 25bps to 2.00% (8:15am New York, 1:15pm London), BBH FX analysts report.
Focus turns to Lagarde and split vote
"President Christine Lagarde’s press conference is 30mins later. The ECB will publish updated macroeconomic projections. At the last April 16-17 policy meeting, the ECB unanimously decided to cut the policy rate by 25bps to 2.25% citing 'the disinflation process is well on track' and 'the outlook for growth has deteriorated owing to rising trade tensions'."
"This time around we doubt the decision to cut the policy rate will be unanimous as a few ECB policymakers (Holzmann, Nagel, Müller, and Schnabel) have recently signaled preference for a pause. A split vote can lead to a modest upward adjustment to ECB rate expectations in favor of EUR. Interest rate futures imply 60bps of ECB easing over next 12 months and the policy rate to bottom between 1.50% and 1.75%."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.