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ECB coverage: policymakers scramble for the microphone on Friday

Several European Central Bank policymakers hit the newswires on Friday, giving their opinions on economic conditions and outlook as Europe sees day two of the ECOFIN meetings, and the Eurogroup meetings get under way today.

Key highlights:

  • ECB's Stournaras:
    • I see a first rate cut in June.
    • Definitely won't see March rate cuts.
    • Euro-area GDP unlikely to grow 0.8% this year
  • ECB's Nagel: 
    • Remains confident inflation will be tamed, ECB mustn't move too soon.
    • ECB should act on data, not steps other central banks take.
    • More comfortable with the current pricing for ECB Cuts.
  • ECB's Schnabel:
    • R* (natural rate of interest) may rise in the coming decades.
  • ECB's Centeno:
    • ECB needs to be open to a March rate cut, even if its unlikely.
    • Inflation might dip below 2% this year, but it will be temporary.
    • Downside risks to inflation and growth have materialized.
  • ECB's Muller:
    • Wage growth is still higher than what we would like to see.
    • It would be a mistake to act too soon and have to correct.
    • ECB needs to be patient with first rate cut.
    • Would like to see firsts quarter wage data before moving on rates.

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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