ECB’s Rehn: If disinflation stays on track, it would make a case for further rate cuts
European Central Bank (ECB) policymaker Olli Rehn said on Tuesday that “if disinflation stays on track, it would make a case for further rate cuts.”
Additional quotes
The direction of our policy moves is clear.
The pace of the moves depends on the data.
We are data dependent but not data point dependent.
Rate cuts will depend on our overall assessment at each meeting.
Euro area growth is projected to be sluggish.
Growth outlook has deteriorated due to manufacturing sector.
We could be leaving the restrictive territory in the spring of 2025.
The last thing we need now is yet another trade war.
Tariffs impact will be medium-to-long term.
Protectionism, by definition, is inflationary.
Market reaction
At press time, EUR/USD loses 0.25% on the day to trade near 1.0625. Traders await the German ZEW sentiment survey for further impetus.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
