ECB President Lagarde says ECB will follow a data-dependent, meeting-by-meeting approach
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Full report here Lagarde declined to provide specific guidance regarding the ECB’s upcoming June 11 meeting. She emphasized that the bank will maintain a "data-dependent" and "meeting-by-meeting" approach to ensure inflation returns to its 2% target. She highlighted the energy pr
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4 itemsLagarde keeps the door open for further ECB rate hikes
The desk interprets today’s press conference as a strategic signaling maneuver by the ECB, indicating a readiness to consider additional rate hikes in response to rising inflationary pressures. As President Lagarde noted, while the latest 25 basis point increase to 2.25% may seem modest, it effectively lays the groundwork against potential economic stagnation amidst broader inflationary concerns. Per the full note from ing-think, this shift is partly a response to past hesitations in tackling inflation, which Lagarde acknowledged. Given the ECB's historical context, traders should be mindful of the potential for further tightening if inflation dynamics worsen, especially as external geopolitical factors continue to reflect inflationary trends in Europe.
ECB policymaker Nagel says data will decide ECB's decision in June
The desk believes that the European Central Bank (ECB) is poised to implement a rate hike in June, driven by the necessity to manage inflation expectations. Per the full note from investinglive.com, ECB policymaker Nagel emphasized that data will be pivotal in determining the central bank's decision, despite market pricing indicating an 88% probability of a rate hike. The desk notes that while inflation has spiked due to energy prices, economic activity is showing signs of slowing, which could temper the ECB's aggressive stance. Current market expectations suggest three rate hikes by year-end, reflecting a significant shift in trader positioning.